Funds News

Foreigners turn net sellers of Japanese equities after 2 weeks of buying

Aug 27 (Reuters) - Foreign investors turned net sellers of Japanese equities for the first time in three weeks, as a hit to the local economy from the coronavirus crisis curbed appetite for domestic shares.

Data from Japanese exchanges showed foreigners were net sellers of stocks worth 161.2 billion yen ($1.52 billion) in the week ended Aug. 21. This consisted of 131.34 billion yen worth of derivatives and 29.86 billion yen in cash equities markets.

Japan saw its biggest economic slump on record in the second quarter due to the coronavirus pandemic. With a 27.8% annualised contraction, the size of the economy shrank to decade-low levels, data showed last week.

The Nikkei index fell 1.6% last week after two consecutive weeks of gains, while the Topix index shed 1.2%.

Japanese investors purchased overseas equities worth a net 30.7 billion yen, marking their first net buying in seven weeks, finance ministry data showed. ($1 = 106.0100 yen)

Reporting by Gaurav Dogra, Patturaja Murugaboopathy; Editing by Subhranshu Sahu