Foreigners turn net sellers of Japanese stocks in week ending March 22

March 28 () – Foreign investors turned net sellers of Japanese stocks in the week ended March 22 due to worries over global economic growth as inversion of the U.S yield curve indicated the chance of a recession ahead. Overseas investors sold a net 62 billion yen ($563.12 million) of Japanese stocks, including cash equities and futures in that week, data from Japanese stock exchanges showed. Foreigners bought a net 316.5 billion yen in derivative markets, and sold 378.5 billion yen in cash markets, the data showed. Japan’s benchmark stock indexes – the Nikkei index and the Topix index gained 0.82 percent and 0.9 percent respectively during March 18-22, though the advances were capped by global slowdown fears. During March 18-22, the yield spread between the three-month Treasury bills and 10-year note inverted for the first time since 2007. Inversion of the yield curve is considered a leading indicator of recession. This week, both major Japanese stock indexes have fallen more than 2 percent. Japanese investors sold 74.2 billion yen worth of overseas equities last week, Ministry of Finance data showed. It was first weekly net sale for three weeks. ($1 = 110.1000 yen) Reporting by Gaurav Dogra and Patturaja Murugaboopathy;
Editing by Richard BorsukOur Standards:The Thomson Trust Principles.