Foreigners become net buyers of Japanese stocks in the week to May 28
June 3 (Reuters) – Foreign investors turned net buyers of Japanese stocks for the first time in three weeks, for the week through May 28, as a resumption of domestic vaccinations raised hopes for normalization faster economic.
Foreigners bought 555.52 billion yen ($ 5.06 billion) net of Japanese stocks, the largest in seven weeks, according to Japanese stock exchange data.
They bought a net amount of 373.82 billion yen in spot equity markets and 181.7 billion yen in derivatives last week.
Meanwhile, cross-border investors bought 1,100 billion yen net of Japanese bonds, according to data from the Ministry of Finance.
A massive vaccination program began in Tokyo and Osaka last month, prompting optimism about the earnings outlook for companies.
Japanese stocks have stagnated for the past three months, affected by a slow rollout of COVID-19 vaccines, cautious earnings outlook and the effective reduction in its share purchases by the Bank of Japan (BOJ).
Last week, the Nikkei stock average gained 2.94% and the Topix index rose 2.24%.
Meanwhile, Japanese investors bought foreign stocks with a net worth of 129.4 billion yen and sold 1.19 trillion yen of Japanese bonds last week, according to data from the Ministry of Finance. ($ 1 = 109,7700 yen)
Reporting by Gaurav Dogra and Patturaja Murugaboopathy; edited by Uttaresh.V