Jan 17 (Reuters) - Foreign investors were net sellers of Japanese equities in the week ended Jan. 10, as tensions escalated after the U.S. killing of an Iranian general, trimming demand for risky assets.
Cross-border investors sold a net 304.6 billion yen ($2.76 billion) of Japanese stocks, including cash equities and futures, data from Japanese stock exchanges showed.
They sold a net 259.12 billion yen in the derivatives markets, and 45.48 billion yen in cash markets, the data showed.
In the September-December quarter, Japanese shares gained more than 8%, drawing overseas investments of about 3.92 trillion yen as optimism over a Sino-U.S. first phase trade deal grew in that period.
The rally briefly waned earlier this year after a U.S. drone strike killed Iranian commander Qassem Soleimani, heightening tensions in the Middle East and raising the prospect of a wider war.
However, Japanese equities indexes - the Nikkei index and the Topix index - recovered from their earlier losses and gained about 0.8% each in the last week.
On the other hand, Japanese investors bought 128 billion yen worth of overseas equities last week, their second successive weekly net buying, finance ministry data showed. ($1 = 110.2200 yen)
Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Jacqueline Wong