(Reuters) – Foreigners turned net sellers of Japanese equities last week after three straight weeks of purchases, marking their biggest net offload since mid-March on renewed concerns about rising coronavirus cases and its impact on economic recovery.
Overseas investors were net sellers of stocks worth 727.26 billion yen ($6.90 billion) in the week ended July 31, data from Japanese stock exchanges showed.
(GRAPHIC – Foreign flows into Japanese stocks: https://fingfx.thomsonreuters.com/gfx/mkt/gjnvwxrnrpw/Foreign%20flows%20into%20Japanese%20stocks.jpg)
They sold a net 462.43 billion yen worth of shares in cash markets, and 264.83 billion yen worth of derivatives.
Japan’s Nikkei index <.N225> and Topix <.TOPX> both plummeted more than 4.5% last week, marking their steepest decline since early April, as fresh daily COVID-19 cases spiked and dampened hopes of a swift economic rebound.
Dismal earnings results from several Japanese firms also dented investor sentiment. Canon Inc <7751.T>, Nissan Motor Co <7201.T> and Mitsubishi Motors Corp <7211.T> all reported quarterly loss.[nL3N2EZ28M ]
Meanwhile, Japanese investors offloaded overseas equities worth a net 919.3 billion yen, marking a fourth successive week of net selling, finance ministry data showed.
(GRAPHIC – Japanese investments in stocks abroad: https://fingfx.thomsonreuters.com/gfx/mkt/azgvoklxevd/Japanese%20investments%20in%20stocks%20abroad.jpg)
(Reporting by Gaurav Dogra, Patturaja Murugaboopathy; Editing by Subhranshu Sahu)