Investors favor Japanese and European markets over US assets — BofA

According to BofA Global Research, investors sold US stocks and bought Japanese and European securities in the week ending Wednesday, April 30. During this period, the outflow from US markets totaled $8.9 billion.

BofA analysts highlight a significant capital shift, driven by weakening interest in American equities. Their analysis shows that investors reallocated funds to other regions, with the Japanese stock market recording its largest inflow since last April, $4.4 billion, and European stocks were replenished by more than $3 billion. Experts attribute this trend to portfolio diversification efforts, even as investors maintain some exposure to US assets.

Additionally, BofA notes that while foreign investors continued purchasing US stocks, the Treasury market saw its largest outflow since late 2023 ($4.5 billion). This trend coincides with economic uncertainty fueled by the Trump administration’s trade policies.