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Funds News

Japanese stocks see highest weekly foreign buying in nine months

Aug 20 (Reuters) - Japanese equities saw their biggest foreign inflows in nine months, in the week ended August 14, on a rally in chip-related stocks and hopes of a fresh round of U.S. stimulus.

Data from Japanese exchanges showed foreigners were net buyers of stocks worth 993.61 billion yen ($9.37 billion) last week. This included purchases of 627.23 billion yen in derivatives and 171.79 billion yen of equities in cash markets.

Optimism that the United States would unveil a new coronavirus aid package boosted risk assets, including the Japanese markets, although talks about the package between the Democrats and Republicans came to a deadlock.

A weaker yen, which fell 0.64% last week, also lifted the Nikkei index to a six-month high. The Nikkei index and the Topix index, both gained over 4% last week.

Technology shares, including semiconductor-related stocks, advanced on hopes for more chip demand related to new technologies, such as 5G communication, after strong gains in global peers.

Meanwhile, Japanese investors sold overseas equities worth a net 1.8 billion yen, marking a sixth successive week of net selling, finance ministry data showed. ($1 = 106.0700 yen)

Reporting by Gaurav Dogra, Patturaja Murugaboopathy; editing by Uttaresh.V

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