July 19 (Reuters) - Foreigners were net buyers of Japanese stocks in the week ended July 12 as a revival of hopes about an interest rate cut by the U.S. Federal Reserve propped up demand for equities.
Overseas investors bought a net 118.17 billion yen ($1.10 billion) of Japanese stocks, including cash equities and futures that week, data from Japanese stock exchanges showed.
Foreigners purchased a net 142.0 billion yen in derivative markets but sold about 23.8 billion yen in cash markets, the data showed.
Japanese stocks were battered at the start of the July 8-12 week as strong June growth in U.S. jobs reduced expectations for aggressive monetary easing measures by the U.S. central bank.
However, markets were relieved after Fed Chairman Jerome Powell raised concerns about the U.S. economic outlook in testimony to Congress, which increased the likelihood of a rate cut at the end of this month.
In the week ended July 12, the Nikkei index lost 0.28%, while the Topix index shed more than 1%.
Japanese investors sold 18.6 billion yen of overseas equities in that week, their first net selling in 10 weeks, data from the Ministry of Finance showed.
($1 = 107.61 yen)
Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Richard Borsuk