Goldman Sachs has stated that Japanese investors who typically do not hedge their overseas assets are showing "no clear signs" of shifting capital into domestic assets.

Strategists including Karen Reichgott Fishman wrote in a report that "we have consistently maintained that any change in fund flows would likely be a gradual process, and so far, that appears to be the case for most unhedged investors."

Trust accounts, which include public pension funds, recorded net purchases of US$7.6 billion in foreign bonds in September, down from US$14.7 billion in August.

Investment trusts, including NISA fund flows, posted net purchases of US$8.7 billion in foreign equities, up from US$8.5 billion in August.

By contrast, hedged investors generally sold off foreign bonds, with net selling by banks accelerating from US$8.3 billion in August to US$15.9 billion, while net selling by life insurers increased from US$900 million in August to US$1.9 billion.