Japanese investors sold foreign equities in June at record levels while increasing their holdings of foreign debt securities, according to data released by the Ministry of Finance on Tuesday.

Investors from Japan offloaded a net 1.99 trillion yen ($13.62 billion) worth of foreign stocks last month, marking their largest monthly net sales since October 2024. At the same time, they purchased a net 1.89 trillion yen worth of foreign bonds, continuing their buying streak for a second consecutive month.

The selling of foreign equities came as investors locked in profits ahead of the expiration of the 90-day pause on U.S. reciprocal tariffs. Global trade negotiations failed to deliver the breakthroughs that investors had anticipated.

Trust accounts, which include pension funds, were the biggest sellers of foreign equities, offloading a net 2.44 trillion yen worth of stocks – the largest amount in a year. However, these same accounts purchased approximately 1.58 trillion yen worth of foreign long-term debt securities.

Not all Japanese investors reduced their foreign stock holdings. Investment trust management companies added foreign stocks worth a net 519.3 billion yen, while bankers and insurers purchased net amounts of 87.5 billion yen and 27.7 billion yen, respectively.

Japanese investors bought long-term foreign bonds worth a combined 2.12 trillion yen in June, adding to the approximately 3.99 trillion yen of net purchases made in the previous month. Despite this trend, they withdrew a net 232.9 billion yen from foreign short-term bills.

On Monday, U.S. President Donald Trump sent letters to at least 14 countries, including Japan and South Korea, announcing tariff increases from 25% to 40%, effective August 1.