April 4, 2019 / 8:15 AM / 2 months ago

Foreigners sell Japanese stocks for second straight week ending March 29

April 4 (Reuters) - Foreigners were net sellers of Japanese stocks for the second consecutive week ended March 29 as a fall in U.S. bond yields stoked fears of a recession in the United States and also of a global slowdown.

Overseas investors sold a net 857.5 billion yen ($7.70 billion) of Japanese stocks, including cash equities and futures in that week, marking their biggest weekly net sales since Oct. 26, 2018, data from Japanese stock exchanges showed.

Foreigners sold a net 783 billion yen in derivative markets, and 74.5 billion yen in cash markets, the data showed.

During March 25-29, the U.S. 10-year Treasury yield fell to 15-month lows, whick kept the yield curve inverted - an indicator that has preceded many U.S. recessions - prompting investors to move away from riskier assets.

Japan’s major stock indexes - the Nikkei index and the Topix index both fell more than 1.5 percent during March 25-29.

Also, companies whose business years end in March went ex-dividend last week, which resulted in an adjustment to their prices. Some analysts estimated a reduction of 180 points in the Nikkei benchmark index, due to the adjustment.

Last week, Japanese investors bought 61.5 billion yen worth of overseas equities, Ministry of Finance data showed. They had sold 74.2 billion yen worth of overseas equities the previous week. ($1 = 111.4100 yen)

Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Jacqueline Wong

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