JPMorgan-Asia Pacific Equity Derivatives Highlights Japan equity flow...-107600977

JPMORGANGlobalQuantitative&DerivativesStrategy15April2024AsiaPacificEquityDerivativesGlobalQuantitativeandDerivativesStrategyHighlightsTonySKLeeACJapanequityflowtrends;Readingtheflowsignals;Tradestobalanceriskandreward(852)2800-8857tony.sk.lee@jpmorgan.com•Recentdatafromexchangesshowsthatforeigninvestors’year-to-dateHaoshunLiupurchasesofJapaneseequitiesexceedthetotalfortheentire2023.Thisincreasedinvolvementofforeigninvestorsraisesquestionsabouthow(852)2800-7736Japaneseequitiesmayreacttoexternalfactors,especiallyconsideringthehaoshun.liu@jpmorgan.comcurrentscenarioofprolongedhighinterestratesandgeopoliticaltensions.InJ.P.MorganSecurities(AsiaPacific)Limited/J.P.thiscontext,weexaminethebehaviorofmajorinvestorsintheJapaneseequityMorganBroking(HongKong)Limitedmarket,aimingtouncoverinsightsonthedirectionofthemarket.•Japanequityflowtrends:InvestmentbehaviorsandflowtrendswithintheJapaneseequitymarketsrevealdistinctpatternsamongvariousinvestorcategories,largelydrivenbytheirstrategicgoalsandmarketperceptions.Foreigninvestorsdisplayastrongmomentumbias,oftenbuyingduringmarketupswingsandsellingindownturns.Recently,foreigninvestorshaveshownincreasedactivity,purchasingthelargestamountofequitiesinasingleweeksinceApril2013,duringtheweekendingApril5,2024.Incontrast,trustbanks,keyinmanagingpensionfundrebalancing,tendtofollo...