Oct 31 (Reuters) - Foreigners were net buyers of Japanese stocks for a third straight week last week as an improved outlook for global tech sector and expectations of a U.S. policy rate cut boosted the appetite for local shares.
Cross-border investors bought a net 192.95 billion yen ($1.78 billion) of Japanese stocks, including cash equities and futures in the week ended Oct. 25, data from Japanese stock exchanges showed.
Overseas investors bought a net 40.83 billion yen in derivative markets and 152.12 billion yen in cash markets, the data showed.
Last week, the Nikkei index hit a one-year high and gained 1.36% while the Topix index surged 1.63%, both marking their third successive weekly gain.
The tech sector, which has a major weighting on Japan’s broader indexes, surged last week on strong quarterly earnings results posted by top U.S. firms.
Intel Corp beat Wall Street estimates for third-quarter revenue and profits and also raised its full-year revenue forecast last week.
Expectations that U.S. Federal Reserve would cut its interest rates at the Oct. 29-30 meeting and progress in phase one of the U.S.-China trade deal also propped up Japanese shares.
The Federal Reserve on Wednesday cut interest rates for the third time this year to boost its economy, but signalled there would be no further reductions unless the economy takes a turn for the worse.
Japanese investors last week bought 14 billion yen worth of overseas equities, their fifth straight week with net purchases, data from the Ministry of Finance showed. ($1 = 108.7000 yen)
Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Richard Borsuk