Foreign investors sell Japanese stocks for 3rd straight week

Aug 22 (Reuters) - Foreigners were net sellers of Japanese stocks for the third consecutive week that ended on Aug. 16, as simmering Sino-U.S. trade tensions and fears of a global recession soured investor sentiment.

Overseas investors sold a net 438 billion yen ($4.12 billion) of Japanese stocks, including cash equities and futures that week, data from Japanese stock exchanges showed.

They offloaded a net 134.5 billion yen in derivative markets and about 303.6 billion yen in cash markets, the data showed.

Last week, yields on 10-year U.S. Treasury notes fell below the two-year yield for a brief period, stoking fears of a potential recession. An inverting yield curve is seen as a leading indicator of an impending economic recession.

Worries over the protracted U.S.-China trade dispute and global slowdown also strengthened safe havens such as the Japanese yen.

The yen rose to its highest level in more than 1-1/2 years against the dollar last week, dragging down shares of major exporters.

In the week ended Aug. 16, the Nikkei and the Topix indexes shed over 1.2% each, marking their third straight weekly decline.

However, outflows declined towards the end of last week after U.S. President Donald Trump backed off his Sept. 1 deadline for 10% tariffs on some Chinese imports such as cellphones, laptops and toys.

Meanwhile, Japanese investors sold 105.6 billion yen worth of overseas equities during the week, their first net selling in four weeks, data from the Ministry of Finance showed. ($1 = 106.3200 yen)

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Subhranshu Sahu)

2019-08-22 10:26:36

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