Japanese stocks see biggest foreign weekly outflow in six weeks
May 19 (Reuters) – Overseas investors were big sellers of Japanese equities in the week ended May 13, as sharp declines in U.S. equities on worries about inflation, rising interest rates and economic health weighed on sentiment.
Overseas investors sold off Japanese stocks for a net 753.19 billion yen ($5.86 billion), marking the biggest weekly outflow since April 1, according to data from Japanese exchanges.
They sold 353.43 billion yen in cash stock markets and 399.76 billion yen in derivatives.
Last week’s data showed that US consumer prices moderated in April, but are expected to remain elevated for some time. Investors feared it would keep the Federal Reserve’s foot on the brakes to cool demand, which could tip the economy into recession.
Nikkei stock average .N225 hit a nearly two-month low at 25,688.11 last week but recovered around 3% over the weekend as investors bought cheap stocks.
The Nikkei and the Topix index .TOPXboth posted losses of more than 2% last week.
Meanwhile, non-native investors bought Japanese bonds worth 575.4 billion yen in a second straight week of net buying, according to finance ministry data.
Japanese investors bought foreign bonds for a net amount of 338.7 billion yen, marking their first weekly net purchase since March 11, but they sold foreign stocks worth 57.4 billion yen after four weeks of consecutive net purchases.
($1 = 128.6100 yen)
Foreign flows to Japanese stockshttps://tmsnrt.rs/3LurnNg
Japanese investments in overseas stockshttps://tmsnrt.rs/3abjIXq
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Uttaresh.V)
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