(Bloomberg) -- Foreign investors’ ownership of Japanese stocks climbed to a record last year, holding about a third, giving them the most sway over the market.

They held 31.8% of the total value in the fiscal year that ended March, the highest since 1970 when the comparable data is available, and when they owned only 4.9%, data from Japan Exchange Group Inc. showed Tuesday. Individual investors accounted for 16.9%, while financial institutions held 28.9%.

Overseas funds have piled in as prospects of an end to deflation, easy monetary policy and improving corporate governance helped make Japan’s stock market one of the best performers last fiscal year, with the Nikkei 225 Stock Average surging 44%. The blue-chip gauge in February reclaimed its 1989 peak, and the broader Topix gauge is now close to joining the record.

The amount foreigners purchased increased to ¥320 trillion ($2 trillion), more than a 40% jump from a year earlier. They turned net buyers for the first time in three years, accumulating ¥7.7 trillion.

Overseas investors have turned net sellers in recent weeks though, as political risks in Europe weighed on sentiment and global investors turn cautious as the yen continues to decline, eroding the value of foreign investors holding in dollar terms.

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