Japanese investors sell foreign stocks on caution over Fed comments

Japanese investors divested significant holdings in foreign stocks in the week to November 1, as they turned cautious amid hawkish remarks from some US Federal Reserve officials and favoured locking in profits after the recent market rally, reports Reuters.
Japanese investors liquidated a net 581.1 billion yen ($3.85 billion) worth of foreign stocks in their largest weekly sales since October 4, according to data from Japan's Ministry of Finance.
The US central bank should not have cut interest rates in October and should not do so again in December, Dallas Fed President Lorie Logan said last week, citing a 'balanced' labor market and inflation level that looked likely to stay above policymakers' 2 per cent goal for too long.
Japanese investors also withdrew a net 354.4 billion yen from long-term foreign bonds, logging their fifth weekly net sales in six weeks. Additionally, they ditched short-term bills worth 798.7 billion yen.