Japanese stocks saw the largest weekly foreign inflow in six weeks

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Foreign investors were the biggest sellers of Japanese stocks in the week ended May 13, as US stocks fell sharply due to inflation, high interest rates and a weight on feelings of economic health.

Foreign investors sold Japanese stocks worth 753.19 billion yen ($ 5.86 billion) on the net, marking the largest weekly outflow since April 1, according to data from the Japanese Exchange.

They sold 353.43 billion yen and 399.76 billion yen worth of derivatives in the cash equity market.

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Last week’s data showed that US consumer prices moderated in April but were likely to remain hot for some time. Investors feared it would put a brake on the Federal Reserve’s efforts to cool demand, which could lead to a recession.

The Nikkei stock average hit a two-month low of 25,688.11 last week but recovered nearly 3% over the weekend as investors snatched cheap stocks.

The Nikkei and Topix indices both lost more than 2% last week.

Meanwhile, non-native investors bought 575.4 billion yen worth of Japanese bonds in the second week of net purchases, according to the finance ministry.

Japanese investors bought 338.7 billion yen of net foreign bonds marking their first weekly net purchase since March 11, but sold foreign equity worth 57.4 billion yen after buying the net for the fourth consecutive week. ($ 1 = 128.6100 yen)

(Reporting by Gaurab Dogra and Patturaja Murugabupathi in Bangalore; edited by Uttaresh.V)

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