In the depressed Japanese stock market, foreigners are quietly raising their stakes. By the end of March this year, foreign ownership accounted for a record 13.4% of listed Japanese stocks, according to data from the National Conference of Stock Exchanges. The rate has been steadily rising for the past 10 years from 4.3% in 1988. Last year, ending March, saw a 1.5% jump in foreign investment, even as the overall market lost value.
Notably, foreign investors are switching out of the shakier sectors,...
