US Investors Flock To Japan Tech Stocks As Nikkei Outpaces S&P Gains

Benzinga

US investors are pouring into Japanese tech and AI stocks as the Nikkei’s dollar-based returns outpace the S&P 500, helped by a stronger yen and pro-stimulus policies, though analysts warn the rally may pause after sharp recent gains.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03U.S. investors are pouring into Japanese stocks tied to technology and artificial intelligence,

00:08lured by the country's superior returns, according to Bloomberg.

00:11U.S. fund inflows mirror the robust performance of Japanese equities,

00:16boosted by a stronger yen and Prime Minister Sanai Takeuchi's pro-stimulus policies.

00:22The Nikkei 225 has risen about 30% in dollar terms this year,

00:26more than doubling the S&P 500's 14% gain.

00:30Goldman's Japan equity strategist Bruce Kirk said U.S. participation is rising at its fastest pace

00:36since Abenomics and may shift market momentum toward growth stocks.

00:40Foreign investors bought a net $2.5 billion of Japanese equities in late October,

00:45though Kirk cautioned that the market may consolidate after recent gains.

00:49For all things money, visit Benzinga.com.

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