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)