Recent Updates
- ** India's RBI Effective XR have rebased from 2004-05=100 to 2015-16=100. We are currently working on these changes. **
- Korea: Passenger Car Trade (Q4), MOTIE Trade (Feb)
- Manufacturing PMIs: Japan, China (Feb)
- Australia: MI Inflation Gauge Index, Avg Weekly Job Ads (Feb),
- more updates...
Economy in Brief
Chicago Business Barometer Declines Sharply in February
The ISM-Chicago Purchasing Managers Business Barometer fell 4.3 points in February to 59.5...
Goods Trade Deficit Widened Slightly in January
The advance estimate of the U.S. trade deficit in goods widened slightly to $83.74 billion in January..
Japan's Industrial Sector Mounts a Comeback
Japan's IP surged in January gaining 4.3% compared to December...
Aircraft Orders Boost U.S. Durable Goods Orders in January
Manufacturers' orders for durable goods increased a much larger-than-expected 3.4% m/m (4.5% y/y) in January...
Kansas City Fed Manufacturing Index Increases Again in February
The Kansas City Fed reported that its manufacturing sector business activity index rose to 24 in February...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Carol Stone June 10, 2005
Japan's Ministry of Finance (MoF) has reorganized its data on the purchase and sales of foreign securities by Japanese investors and the similar data on foreign investment in Japanese securities. The new data began this past January and are designed to mesh better with the balance of payments. They are contained in Haver's "JAPAN" database and summary statistics are available weekly in JAPANW.
In the table below, we show total purchases and sales of foreign securities by Japanese investors. In May, Japanese residents bought ¥14.4 trillion worth and sold ¥11.4 trillion, making net purchases of ¥3.0 trillion. This figure appears in the table with a minus (-) sign. This convention is in line with balance of payments practices that treat these transactions according to the direction of the flow of capital. With net purchases, then, there is a net outflow of money and the sign is minus (-). In February and March, sales exceeded purchases, so there was a net inflow of money into Japan and the sign of the net figure is plus (+).
The bulk of the new securities investment abroad is in bonds and notes; this is typical, according to the old data, which was discontinued with the December 2004 figures. Further, as seen in the first graph, banks take a substantial share of this investment activity. With only five months of the new data, we can't judge trends yet, of course, but it does seem here than when the new Japanese fiscal year started in April, investment abroad picked up significantly. At the same time, foreign investors stepped up their net purchases of Japanese securities in April and May as well. Here, net purchases have the expected plus (+) sign, since they represent a net inflow of funds into Japan. Japanese investment abroad is larger, but a point we highlight here is that there are active flows of capital and financial assets in both directions, illustrating the diversity of interests in world capital markets.
Japan (Trillion ¥) | May 2005 | Apr 2005 | Mar 2005 | Feb 2005 | Jan 2005 |
---|---|---|---|---|---|
Purchases | 14.372 | 14.915 | 10.348 | 10.631 | 10.728 |
Sales | 11.351 | 10.681 | 11.171 | 11.410 | 10.064 |
Net Purchases/ Sales | -3.017 | -4.234 | +0.824 | +0.779 | -0.664 |
Bonds & Notes | -2.626 | -4.003 | +0.768 | +0.648 | -0.589 |
Equities | -0.254 | -0.199 | -0.059 | +0.031 | -0.151 |
Money Market Instruments | -0.138 | -0.032 | +0.114 | +0.010 | +0.075 |