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Japanese investments in foreign stocks experienced their largest monthly outflow in over five years during May, as they sold a net worth of 2.72 trillion yen (approximately $17 billion) due to rising geopolitical concerns and increased valuations of AI-driven technology stocks. Conversely, the Japanese increased their investments in foreign debt instruments, purchasing bonds with a net total of 2.9 trillion yen, amid declining performance in global markets and pressure on tech stocks following strong US labor market data. In the long term, Japanese investors continued to show interest in foreign markets, purchasing American and European stocks during the first four months of the year.
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