Foreigners become net sellers of Japanese stocks in the week of November 19


Nov. 26 (Reuters) – Foreign investors turned net sellers of Japanese equities last week as global inflation concerns and mounting cost pressure from a weaker yen outweighed the strength of the weights heavy technology.

Foreigners sold shares with a net worth of 145.05 billion yen ($ 1.27 billion) in the week of November 19 after two consecutive weeks of net buying, according to data from Japanese stock exchanges.

Foreign flows in Japanese stocks

Investors sold a net amount of 147.5 billion yen on the spot stock markets, but bought derivatives for a net amount of 2.45 billion yen.

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However, foreign investors bought net 3.64 billion yen worth of Japanese bonds last week, marking a third consecutive week of net buying, according to finance ministry data.

A combination of stronger-than-expected retail sales in the United States and rising consumer prices made investors cautious last week as it increased the odds that the U.S. Federal Reserve could raise rates earlier than expected .

The dollar hit a four and a half year high against the yen last week.

However, Japanese stocks gained the week before on demand from bullish-looking companies such as Toyota Motor (7203.T) and expectations of a bigger-than-expected government stimulus package. Read more

The Nikkei stock average (.N225) gained 0.46% last week and the Topix index (.TOPX) rose 0.2%.

Both Japanese indices are expected to lose around 3% this week amid concerns over the spread of a newly identified variant of the coronavirus in South Africa that could deter a global economic recovery. Read more

Japanese investors sold 546.6 billion yen net of foreign stocks last week, which was their biggest weekly net sale since mid-April, despite buying 10.3 billion yen net of cross-border obligations.

Japanese equity investments abroad

($ 1 = 114.5,200 yen)

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Report by Gaurav Dogra and Patturaja Murugaboopathy in Bangalore

Our Standards: Thomson Reuters Trust Principles.

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