July 11, 2019 / 8:35 AM / 10 days ago

Foreigners turn net buyers of Japan stocks in July 1-5 week

July 11 (Reuters) - Foreigners turned net buyers of Japanese stocks in the first week of July as renewed U.S.-China trade talks and stronger prospects for a U.S. interest rate cut bolstered sentiment.

Overseas investors bought a net 261.3 billion yen ($2.42 billion) worth of Japanese stocks, including cash equities and futures that week, registering their first weekly net purchase in nine weeks, data from Japanese stock exchanges showed.

Foreigners purchased a net 216.4 billion yen in derivative markets and about 45 billion yen in cash markets, the data showed.

Global stocks rallied in the July 1-5 week after the United States and China agreed on June 29 to resume trade negotiations.

In the week ended July 5, the Nikkei index gained 2.2% and rose for a fifth straight week, its longest weekly gaining streak since mid-May 2018. The Topix index gained 2.67% in that week, its biggest weekly gain since the middle of January this year.

Expectation of interest rate cuts by major central banks also boosted stocks last week.

Strong U.S. jobs data last Friday dampened market expectations of a U.S. interest rate cut, but Federal Reserve Chairman Jerome Powell’s comments in his testimony before Congress on Wednesday rekindled expectations for a cut - the first in a decade - later this month.

Japanese investors bought 27.5 billion yen of overseas equities in the week ended July 5, their ninth straight week of net purchase, data from the Ministry of Finance showed.

($1 = 107.9800 yen)

Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Jacqueline Wong

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