U.S.-Japan trade pact; Alphabet, Tesla to report - what’s moving markets
Investing.com -- Global hedge funds sold Japanese equities at the fastest rate in almost two-and-a-half months last week, ahead of Sunday’s upper house election, according to Goldman Sachs.
The election delivered a significant setback to Prime Minister Shigeru Ishiba and his ruling coalition, an outcome that aligned with expectations of investors who had been selling Japanese stocks and bonds before the vote.
Japan’s stock markets have underperformed global peers in July, with the benchmark Nikkei 225 dropping 1.7% and the Topix falling 0.6% month-to-date. Both indexes ended lower on Friday.
The election results have further weakened Ishiba’s political position, though he has pledged to remain party leader to finish trade tariff negotiations with the United States.
According to a Goldman Sachs prime brokerage note on Friday, the hedge fund selling between July 11 and July 17 was primarily driven by increased short positions combined with a moderate reduction in long positions.
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