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Foreigners sell Japanese stocks for third straight week on U.S. election worries

Nov 6 (Reuters) - Foreign investors stepped up selling in Japanese equities last week, pressured by uncertainty about the U.S. presidential election and a renewed surge in coronavirus cases across the United States and Europe.

Foreigners were net sellers of stocks worth 629.07 billion yen ($6.08 billion) for the week ended Oct. 30, compared with 64.86 billion yen sold in the previous week, data from Japanese exchanges showed.

They offloaded 522.99 billion yen worth of derivatives and 106.08 billion yen in cash equities markets.

Investors were wary ahead of the U.S. presidential elections last week, as the prospect of no immediate winner in the race threatened to adversely affect regional markets and risk sentiment.

Japan’s Nikkei share average fell 2.3% last week, while the Topix index shed 2.8%, marking the biggest weekly decline since end-July.

Both indexes, however, have surged more than 5% this week with the Nikkei hitting a 29-year high, as the growing prospect of a Joe Biden presidency and a Republican Senate boosted hopes that a split Congress would make it hard to enact big policy changes, such as corporate tax hikes.

Meanwhile, Japanese investors purchased overseas equities worth 346.3 billion yen last week, their first weekly purchase in three weeks, finance ministry data showed.

($1 = 103.5400 yen)

Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Devika Syamnath