European Markets

Japanese stocks see biggest weekly foreign outflow in over two months

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Dec 9 (Reuters) - Foreigners sold Japanese shares heavily last week on worries about the possibility of fresh COVID-19 linked activity curbs and rising prospects that the U.S. Federal Reserve will accelerate the pace of unwinding its stimulus support.

Foreigners offloaded stocks worth a net 827.31 billion yen ($7.28 billion) in the week to Dec. 3, marking their biggest weekly net selling since Oct. 1, data from Japanese exchanges showed.

Foreign flows into Japanese stocks

Investors sold a net 707.18 billion yen worth of derivatives and a net 120.13 billion yen in cash equity markets.

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However, overseas investors purchased Japanese bonds worth 1.76 trillion yen last week, that marked a fifth consecutive week of net buying, finance ministry data showed.

Last week, Japanese stocks fell further to at least an eight-week low, amid uncertainties about the likely impact of Omicron coronavirus variant on the pace of global economic recovery. read more

A hawkish tilt at the U.S. Federal Reserve, with the central bank likely to accelerate tapering of its bond-buying program and lift rates as soon as mid-2022, added to the chaos. read more

The Nikkei share average (.N225) dropped 2.5% and the Topix index (.TOPX) lost 1.37% last week, in their second consecutive week of decline.

This week, Japan shares are set for their first weekly gain in three weeks, as stocks tracked a recovery at the Wall Street amid some optimistic comments from a top U.S. official on the latest variant. read more

Japanese investors purchased a net 1.22 trillion yen worth of cross-border equities last week, that marked their biggest weekly net buying since at least Jan. 2018, however, they sold overseas bonds of 1.16 trillion yen.

Japanese investments in stocks abroad

($1 = 113.6400 yen)

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Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Rashmi Aich

Our Standards: The Thomson Reuters Trust Principles.

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