Japanese investors are a crucial part of US markets:

Japanese holdings of US bonds and stocks totaled $2.22 trillion at the end of 2024, according to Bank of Japan data.

This is followed by investments in the Cayman Islands, France, and the UK at $834 billion, $179 billion, and $150 billion, respectively.

In other words, Japanese exposure to the US is TWICE as large as their combined positions in these 3 countries.

Furthermore, total foreign assets owned by Japanese investors rose to $4.95 trillion in Q3 2025, near an all-time high.

This comes as they held $2.54 trillion in equity and investment-fund shares and $2.41 trillion in debt.

What happens if these investors start bringing money back home?