The ratio of Japanese stocks held by foreign investors at the end of fiscal 2015 was down 1.9 percentage points from a year earlier at 29.8 percent, data showed Monday. It was the first decline in four years.
The figure reflects the departure of nonresidents from Japanese stock markets in fiscal 2015 amid worries over China's slowdown and slumping oil prices. Foreign investors were a main driver of the earlier market rally, which helped to drive the yen down.
The Nikkei average stood at 16,758.67 on March 31, down nearly 13 percent from a year earlier. It was the first year-on-year decline in five years.
The data was compiled by stock exchanges in Tokyo, Sapporo, Nagoya and Fukuoka. It showed that the proportion of shares held by nonresident investors started to increase in fiscal 2012, when Prime Minister Shinzo Abe's administration was launched.
Shares owned by foreign investors accounted for a record 31.7 percent in fiscal 2014 amid hopes for Abenomics.
But nonresident investors began selling up in fiscal 2015, with a net sale of ¥5.10 trillion, the largest since fiscal 1987 and the turmoil around so-called Black Monday.
In contrast, shares held by individual investors made up 17.5 percent as of the end of March, up 0.2 percentage point, the data showed. It was the first increase in four years.
Shares held by trust banks, which manage pension funds, increased 0.8 percentage point to 18.8 percent, for the second consecutive yearly gain.