Foreigners turn net buyers of Japanese stocks

Foreign investors increased their risk appetite, channelling funds into Japanese stocks last week, buoyed by data indicating that core US inflation was slowing down, reports Reuters.
Data from Japanese exchanges showed foreign investors purchased shares worth 542.22 billion yen ($3.66 billion) in the week ended September 15, compared with about 719.58 billion yen of net selling in the prior week.
They were net buyers of derivatives worth 870.37 billion yen, but net sellers in cash equities, with 278.15 billion yen in net disposals.
Data last week showed the annual rise in US core inflation was the smallest in nearly two years in August.
Japanese stocks saw big gains last week as the broader Topix index clocked a 33-year peak.
However, global stocks markets, including Japanese shares witnessed significant declines this week as the Fed surprised investors by flagging the potential for an additional rate increase and fewer cuts next year.
Local shares have shed over 2 per cent this week.
Foreign investors have poured about 8.41 trillion yen into Japanese shares so far this year, compared with about 2.3 trillion yen worth of net selling last year.
Meanwhile, overseas investors offloaded about 2.42 trillion yen of short-term Japanese bonds, the biggest amount in three weeks according to data from Japan's Ministry of Finance.