Aug 4 (Reuters) - Foreigners turned net sellers of Japanese
stocks in the week ended July 29 on concerns over some
disappointing corporate earnings outlook and the recent strength
in the yen, seen unfavorable for local exporters.
Overseas investors sold Japanese stocks worth a net 150.18
billion yen ($1.12 billion) last week, which compares with
885.63 billion yen worth of net buying in the week before, data
from exchanges showed.
They exited 308.3 billion yen in cash equities, but
purchased derivatives worth a net 158.12 billion yen.
A recent rally in the yen weighed on investor sentiment last
week as its weakness earlier this year, had boosted the profit
outlook for some local exporters.
Shares of Nitto Denko fell more than 5% last week
as currency was the major driver behind its earnings outlook
upgrade. Meanwhile, Toyota supplier Denso downgraded
its outlook and dipped 7% last week.
The Nikkei share average and the Topix index
, however, added 1.73% and 1.4% respectively last week,
marking their second weekly gain in a row.
Last week, Japanese bonds drew 296.5 billion yen worth of
foreign money in a fifth straight week of inflow, finance
ministry data showed.
On the other hand, Japanese investors sold overseas bonds of
69.6 billion yen last week, but obtained 336.9 billion yen worth
of foreign equities in a seventh successive week of net buying.
($1 = 134.00 yen)
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in
Bengaluru; Editing by Shailesh Kuber)