Foreign investors withdrew from Japanese stocks last week, ending an eight-week buying spree, influenced by losses in technology shares, rising geopolitical tensions, and expectations of a Bank of Japan interest rate hike in December.
Ministry of Finance data showed that foreigners divested a net 446 billion yen worth of Japanese stocks in the week ending Nov. 23 – their first weekly net sales since Sept. 21.
Last week, Japanese technology stocks followed U.S. counterparts lower, dampening broader investor sentiment. Tech start-up investor SoftBank Group shed 3.75% while chip-making equipment maker Tokyo Electron hit a 2-1/2-month low.
BOJ Governor Kazuo Ueda last week signalled that the central bank would likely push rates up again soon. The Overnight Index Swap indicate a 55.99% chance that the BOJ would raise rates to 0.5% at its December policy meeting.
The Nikkei stock index logged a second straight weekly loss, dropping 0.93% last week, hurt by concerns over potential tariffs by U.S. President-elect Donald Trump on Japanese exports and escalation in the Russia-Ukraine conflict.
Meanwhile, Japanese long-term bonds witnessed a net 300.7 billion yen worth of foreign outflows last week following about 1.16 trillion worth of inflows the week before. Foreigners also ditched 1.96 trillion worth of short-term bills.
Japanese investors, meanwhile, offloaded a net 318.1 billion yen worth of foreign stocks, marking their sixth weekly net sales in seven weeks.
They also withdrew 773.7 billion yen from overseas long-term bonds in their sixth week of net sales in seven weeks.
This article was generated from an automated news agency feed without modifications to text.
