Jan 23 Reuters Japanese investors raised their holdings in foreign stocks, driven by a benign U.S. core inflation report that fuelled expectations of Federal Reserve cuts and boosted global equities, while a strong yen also lifted domestic buying power.

They invested a net 489.8 billion yen 3.13 billion into overseas stocks, for a sixth straight week through Jan. 18, marking their secondlargest weekly net purchase since Sept. 7, 2024, according to data from Japan39;s Ministry of Finance.

Analysts noted that the investment in foreign stocks was also driven by increased flows into the new Nippon Individual Savings Accounts NISA programme, a taxfree investment scheme, and they expect such investments to persist through March.

U.S. core inflation data for December reported a 3.2 increase last week, slightly below the forecast of 3.3. Strong fourthquarter earnings from major firms such as JPMorgan, BlackRock and Goldman Sachs lifted the MSCI World Index by 2.56, marking its largest weekly gain since Nov. 8, 2024.

Japan39;s market participants also acquired foreign debt securities of a net 1.01 trillion yen, the highest for a week since Nov. 9. They poured 819.3 billion yen into longterm bonds and 194.2 billion yen into shortterm bills.

At the same time, Japanese stocks witnessed a marginal 66.1 billion yen worth of foreign outflows last week, contrasting 259.1 billion yen in inflows in the previous week.

Japan39;s Nikkei share average reached a 112month low of 38,055.68…