Global Market: Japanese investors dump overseas bonds as rising crude revives inflation fears

Japanese investors were net sellers of 970.5 billion yen (about $5.92 billion) of foreign bonds in the latest week, the largest weekly divestment since April 25, driven by a 15.9 percent surge in Brent crude above $100 a barrel after Houthi attacks on Saudi oil tankers revived inflation fears. Japanese investors also turned net sellers of foreign equities for the first time in five weeks, offloading 121.3 billion yen, while foreign investors cut Japanese bond holdings by 490.7 billion yen and sold 79.5 billion yen of Japanese stocks. The cross-border flow shifts reflect growing caution that major central banks may delay rate cuts amid persistent energy-driven inflation.