Foreigners net buyers of Japanese stocks as bets of Fed rate cut ease tech valuation worries

They, however, shed 771.3 billion yen worth of foreign long-term bonds in their first weekly net sales since November 1. ($1 = 155.3600 yen)

Foreign investors bought a significant amount of Japanese stocks in the week to November 29, snapping up technology stocks on bets of a Federal Reserve rate cut and banking shares on the expectations of a potential rate hike by the Bank of Japan. They bought a net 655.6 billion yen ($4.22 billion) worth of local stocks during the week, reversing their 351.5 billion yen weekly net sales the prior week, Japan's Ministry of Finance showed on Thursday.

Artificial intelligence-linked shares Advantest and Tokyo Electron gained 12.34% and 5.37%, while banking stocks Sumitomo Mitsui Financial Group and Yamaguchi Financial Group surged 5.6% and 13.44%, respectively, last week. Japanese stocks have so far attracted approximately 7.22 trillion yen worth of foreign inflows this quarter as Prime Minister Sanae Takaichi's government stimulus and robust corporate earnings boosted sentiment.

LSEG data for 742 large- and mid-cap companies showed that Japanese firms are expected to report net income growth of 15.2% next year, following an 8.5% growth for the current fiscal year, as per the mean of analyst estimates. Foreigners, meanwhile, bought 1.06 trillion yen worth of Japanese long-term bonds in their fourth weekly net purchase in five weeks, although yield on 30-year Japanese government bonds (JGBs) rose to a record high on Thursday.

Elsewhere, Japanese investors added a net 96.6 billion yen worth of foreign stocks in their smallest weekly net purchase in three weeks. They, however, shed 771.3 billion yen worth of foreign long-term bonds in their first weekly net sales since November 1.

($1 = 155.3600 yen)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)