Trump's tariff policy triggers a safe haven wave, foreign capital will sweep Japanese stocks to a 12 year high in 2025. Affected by economic uncertainty under Trump's rule, overseas investors flocked to the Japanese stock market last year in search of safe haven, with their purchasing volume reaching a new high since 2013. According to data from the Tokyo Stock Exchange, overseas investors purchased approximately 5.4 trillion yen (approximately 35 billion US dollars) worth of Japanese stock spot in 2025, which is 35 times the amount purchased in 2024. The purchasing volume of foreign investors is second only to domestic Japanese companies, which have net bought 10.5 trillion yen of domestic stocks in the context of the ongoing wave of stock buybacks in Japan. Japanese stock market analyst Pelham Smithers wrote in a report that the "aggressive" buying behavior of foreign capital last year was mainly due to optimistic expectations for the Japanese economy, which benefited from the Bank of Japan's steady progress in normalizing monetary policy. He wrote, 'Foreign investors are often strongly driven by economic strength and expectations.' However, Smithers warns that as Japanese stock indices have risen to historic highs, foreign investors may become more discerning in their choices this year.