Domestic Bonds

Foreigners become net sellers of Japanese stocks in the week to February 18

Feb 25 (Reuters) – Foreign investors were net weekly sellers of Japanese stocks last week as tensions in Ukraine and the growing likelihood of global policy tightening this year weighed on sentiment, although that a decline in new COVID-19 infections in Japan has limited outflows.

Foreigners sold Japanese stocks for 21.45 billion yen ($186.13 million) in the week to February 18, compared to a net purchase of 217.64 billion yen the previous week, the data showed. Japanese scholarships.

Foreign flows into Japanese equities

Foreigners sold derivatives for 24.69 billion yen but bought a net amount of 3.24 billion yen on spot stock markets.

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A stalemate in Russian-Ukrainian tensions kept investors on edge last week. This week, however, Moscow launched a military operation in Ukraine’s Donbass region, which Ukraine and Western governments have described as a full-scale invasion. Read more

Last week, retail sales data from the United States and higher inflation figures from Canada and Britain, which added to the outlook for tighter monetary policy around the world, further soured the feeling.

The Nikkei index (.N225) and the Topix index (.TOPX), both lost around 2% last week, marking their first weekly decline in three weeks.

However, shares of domestic transportation companies (.IRAIL.T), which would benefit from an economic reopening of restrictions related to the COVID-19 pandemic, gained last week as new infections in Japan fell. Read more

Meanwhile, cross-border investors bought Japanese bonds worth 2.99 trillion yen, compared with a net sale of 3.15 trillion yen the previous week, according to data from the Ministry of Finance.

Japanese investors sold cross-border stocks for 56 billion yen last week after three straight weeks of net buying. They also sold overseas bonds for 4 billion yen.

Japanese investments in overseas stocks

($1 = 115.2400 yen)

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Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; edited by Uttaresh.V

Our standards: The Thomson Reuters Trust Principles.