Japanese equities draw huge foreign inflows amid easing Fed rate hike fears

Foreign investors were major buyers of Japanese equities last week, buoyed by robust corporate earnings and a broader global market rally amid expectations that the US Federal Reserve may pause its aggressive interest rate hikes, reports Reuters.
Data from Japanese exchanges showed foreign investors purchased stocks worth a net 1.12 trillion yen ($7.40 billion)in the week ended Nov. 10, their biggest weekly net buying since the week ended June 16.
Investments were predominantly focused in derivatives, totaling about 1.04 trillion yen, complemented by 78.3 billion yen directed into cash equities.
Year-to-date, Japanese stocks have attracted net inflows of 5.96 trillion yen from foreign investors, a stark contrast to 4.07 trillion yen of net outflows in the year-ago period.
On Thursday, Japan's Nikkei snapped a three-day winning streak as investors chose to lock in profits after a sharp rally in the previous session, with a rebound in US Treasury yields also weighing on sentiment.
Meanwhile, Japanese investors withdrew 73 billion yen from overseas stocks in the last week, becoming net sellers of foreign stocks for the first time in seven weeks.