Japanese stocks see biggest weekly foreign outflow in two months

FOREIGN investors sold Japanese stocks in the week ended Dec 2, as sharp gains in the yen raised concerns about a hit to car and other exporters’ earnings. Investors were also worried about weak domestic economic data.

In their biggest weekly net selling since Sep 30, foreigners offloaded a net 781.6 billion yen (S$7.8 billion) worth of Japanese equities, compared with net purchases of 987 billion yen in the previous week, data from exchanges showed.

Overseas investors exited derivatives worth a net 804.2 billion yen, but purchased cash equities of 22.7 billion yen. They have been net sellers of about 3.1 trillion yen worth of Japanese stocks so far this year, the data indicated.

Weighing on investor sentiment, data showed last week that factory activity in Japan fell for a second consecutive month in October, as global demand weakened and supply bottlenecks lingered.

Last week, the Topix index fell 3.2 per cent and the Nikkei share average shed 1.8 per cent.

Data showed cross-border investors bought a net 994.3 billion yen worth of Japanese bonds last week, after selling 5.5 trillion yen worth of bonds in the previous week.

SEE ALSO

Japan proposes expanding tax-free investment scheme for savers

Asean summit signals Europe’s focus on Asia-Pacific

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Meanwhile, Japanese investors purchased foreign equities of about 618 billion yen, while securing overseas bonds worth a net 284.4 billion yen after six straight weeks of selling. REUTERS