Japan NISA investors continue to prefer U.S. and global equities

TOKYO -- Japanese retail investors still favor U.S. and global equities almost a year after a tax-saving investment scheme was updated as these assets have been outperforming domestic stocks.

The Japanese government rolled out the new Nippon Individual Savings Account, or NISA, in January with greater tax exemptions to encourage households to move their savings to financial investments and to help cope as the country transitions into an inflationary environment. With the change, foreign investors increased their exposure to Japan, betting the scheme would boost domestic retail participation.