Goldman sees reasons for foreign investors to return to Japanese stocks

Tokyo

NOW could be the time for foreign investors to return to Japanese equities, according to Goldman Sachs.

Corporate governance reforms, a recovery in domestic demand and the strong performance of local stocks in US dollar terms are all potential catalysts that may lure foreigners back after they sold a net 1.1 trillion yen (S$13.9 billion) of Japanese equities in the last quarter, strategists including Kathy Matsui wrote in a report on foreign investor positioning in the market.