Japanese stocks see second straight week of foreign inflows

Foreigners were net buyers of Japanese stocks for a second consecutive week in the week ending August 12, as risky buying began after US inflation slowed which sparked the hope that the Federal Reserve could slow the pace of interest rate hikes.

Overseas investors bought Japanese stocks with a net worth of 393.85 billion yen ($2.91 billion) last week, marking their biggest weekly purchase since July 22, according to exchange data.

They bought 122.9 billion yen worth of stocks in cash and acquired 270.95 billion yen worth of derivatives, in a fourth straight week of net buying.

Last week, fears over scorching US inflation eased as data showed consumer prices were unchanged in July from June, raising hopes that inflation may have already peaked. peak.

Benchmarks for major Japanese stocks – the Nikkei stock average and the Topix index – both gained around 1.3% last week, posting a second straight weekly gain.

The Nikkei index hit an over-seven-month high of 29,222.77 earlier this week as a rally on Wall Street and another round of robust corporate earnings nationwide boosted sentiment.

Meanwhile, Japanese bonds lost 289.4 billion yen net of cross-border outflows during the week, marking the first weekly net selling in seven weeks, by foreigners.

Non-Japanese bonds attracted a net 1.09 trillion yen of funds from Japan, although equities saw selloffs, worth 234.8 billion yen, in a second straight week net sales. ($1 = 135.2100 yen)

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Uttaresh.V)

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