Japan stock volatility chased away speculators, lured long-term investors

TOKYO — On Aug. 5, Katsuaki Nagai, manager of the trading division at Marusan Securities, received a flurry of orders from wholesale clients looking to buy the biggest daily drop in Japanese stocks ever.

Japanese institutional investors' appetite for domestic exchange-traded funds was so great that it caused concern in Nagai's office. “We panicked more than our customers,” he said, about fulfilling orders.

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