Japanese stocks record their first weekly overseas exit in five weeks

September 30 (Reuters) – Foreign investors turned net sellers of Japanese stocks in the week to September 24, as property giant China Evergrande defaulting fears prompted investors to post profits on three-decade highs local clues scaled this month.

Foreigners sold stocks with a net worth of 281.1 billion yen ($ 2.54 billion) last week, marking their first weekly net sale since August 20, according to data from Japanese stock exchanges.

Investors sold 269.2 billion yen on spot equity markets and derivatives for a value of 11.9 billion yen.

Cross-border investors also sold Japanese bonds for a net amount of 3,470 billion yen, marking the first weekly net sale in five weeks, according to finance ministry data.

Japanese stocks fell from their three-decade highs last week as concerns over a default by developer China Evergrande Group hit investor risk appetite.

The Nikkei stock average fell 0.82% last week after four consecutive weekly gains and the Topix index slipped 0.45%.

This week, Japanese stocks are set to fall for a second week in a row, as investors lack clues as to which sectors are likely to benefit from Fumio Kishida’s appointment as the new leader of the ruling Liberal Democratic Party, the putting on the right track to become the country’s new prime minister.

Japanese investors bought 126.8 billion yen net of foreign stocks to mark their second straight week of net buying. Last week, they bought 402 billion yen net of foreign bonds last week, according to finance ministry data. ($ 1 = 110.7420 yen)

Reporting by Gaurav Dogra and Patturaja Murugaboopathy; edited by Barbara Lewis

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