Encouraged by new lows in the Nikkei Stock Average, as well as other major indices, Japanese investors are buying up stocks, the Nihon Keizai Shimbun reports.


Last month, investors purchased $778 million worth of Japanese equity mutual funds, the first month of inflows in seven months.


“There was a surge of interest when the Nikkei average fell briefly under 7,000,” explained an official with Resona Bank.


Investors in particular seem to be taking to stock index funds. “Money seems to be flowing into funds in which it is easier to see price movements rather than actively managed funds,” said a mutual fund consultant.


Inflows to the five index funds that Mitsubishi UFJ Asset Management offers increased fivefold in October to $141 million.

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