Japan’s equity market initially fell sharply after the Tohoku earthquake. However, share prices subsequently recovered some lost ground, aided by a weaker yen against the dollar as the G7 undertook coordinated currency intervention. Demand for Japanese shares from abroad was notably strong after the market fell, perhaps as a result of the latter’s relatively attractive valuation from a historical perspective. Net purchases of Japanese shares by overseas investors in the week ended 18th March were the highest since March 2004.
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