Japanese investors currently hold about 5 trillion US dollars in overseas assets, half of which are invested in the US — Japanese investors hold about 2.5 trillion US dollars in US stocks, bonds, and other financial assets. And with interest rates rising steadily in Japan, the country's more attractive earnings prospects are likely to induce some capital to return to the mainland. This shift may slow down or even reverse the steady cash flow that has supported global asset prices such as the US and Europe for a long time. Rory Green, head of Asia and Emerging Markets at the London-based research firm GlobalData TS Lombard, graphically stated, “The Japanese yen, a supership, is changing course.”

Japanese investors currently hold about 5 trillion US dollars in overseas assets, half of which are invested in the US — Japanese investors hold about 2.5 trillion US dollars in US stocks, bonds, and other financial assets. And with interest rates rising steadily in Japan, the country's more attractive earnings prospects are likely to induce some capital to return to the mainland. This shift may slow down or even reverse the steady cash flow that has supported global asset prices such as the US and Europe for a long time. Rory Green, head of Asia and Emerging Markets at the London-based research firm GlobalData TS Lombard, graphically stated, “The Japanese yen, a supership, is changing course.”