Japanese stocks see foreign selling after three weeks of inflows


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Foreign investors sold Japanese stocks last week, as they booked profits after buying them for three consecutive weeks, with some weakness in growth and technology stocks weighing on sentiment.

Weekly net foreign selling, however, stood at just 8.34 billion yen ($60.19 million) for the week ended Nov. 18, compared with net purchases of 734.89 billion yen in the previous week, data from exchanges showed.

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Another big quarterly loss at SoftBank Group’s investment arm Vision Fund weighed on investor appetite, while chip-related stocks were also dragged down by announcement of a cut in capital spending and chip supply by semiconductor firm Micron Technology Inc.

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Foreigners exited a net 16.96 billion yen in cash equities but secured derivatives worth a net 8.62 billion yen.

Foreigners are net sellers of 3.35 trillion yen worth of Japanese stocks so far this year, the data showed.

The Nikkei share average lost 1.3% last week after three weeks of gains in a row, while the Topix index shed 0.54%.

Meanwhile, non-native investors purchased a net 5.77 trillion yen worth of Japanese bonds last week, marking their biggest weekly net buying since January 2021.

Japanese investors, however, exited 466.4 billion yen worth of overseas bonds last week, but obtained a net 46.9 billion yen worth of foreign equities in their first weekly net buying since Oct. 21.

($1 = 138.5700 yen)

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Rashmi Aich)


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