According to EPFR data, for the week ending in late October, net inflows into Japanese stock funds exceeded $6 billion, marking the fourth time this level has been surpassed on record and the first time since late April. Cumulative net inflows since 2026 have surpassed $33 billion, equivalent to 2.8% of the assets of related funds. However, the structure of this inflow is noteworthy: over half of the funds flowed into those tracking the Nikkei 225 index, with the inflow scale second only to the record set in 2019; leveraged Nikkei funds saw inflows rise to a 16-week high, ending three consecutive weeks of net outflows. In contrast, funds tracking the MSCI Japan index had previously shown more stable inflows. The data indicates that the recent inflow into the Japanese stock market reflects not only long-term allocation demand but also significant index trading and leveraged fund activities. If market volatility increases, leveraged funds may quickly reverse their flows, making it a key focus to see if this substantial weekly inflow can translate into sustained allocation.