@ivvy

Japanese investors are a crucial part of US markets: Japanese holdings of US bonds and stocks totaled $2.22 trillion at the end of 2024, according to Bank of Japan data. This is followed by investments in the Cayman Islands, France, and the UK at $834 billion, $179 billion, and $150 billion, respectively. In other words, Japanese exposure to the US is TWICE as large as their combined positions in these 3 countries. Furthermore, total foreign assets owned by Japanese investors rose to $4.95 trillion in Q3 2025, near an all-time high. This comes as they held $2.54 trillion in equity and investment-fund shares and $2.41 trillion in debt. What happens if these investors start bringing money back home?

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