Oct 15 (Reuters) - Foreign investors turned net buyers of Japanese equities for the first time in six weeks, as hopes of additional U.S. stimulus restored appetite for riskier assets.
Data from Japanese exchanges showed foreigners were net buyers of stocks worth 585.89 billion yen ($5.57 billion) for the week ended Oct. 9, the biggest since mid-August.
They purchased 417.05 billion yen in cash equities markets, and 168.84 billion yen worth of derivatives.
Last week, U.S. President Donald Trump said talks with the Congress about additional coronavirus relief stimulus, which he had abruptly called off earlier, had restarted.
Japan’s export sector, which is sharply hit by an ailing U.S economy, will likely benefit if further stimulus measures are passed by the U.S. government.
The U.S. economy, ravaged by the resurgence of coronavirus cases, is certain to lose momentum without a new stimulus — a risk for Japan’s export sector.
The Nikkei 225 Index rose 2.6% last week and hit its highest in more than seven months, while the broader Topix index added 2.4% to record its best week since Aug. 14.
On the other hand, Japanese investors purchased overseas equities worth a net 312.5 billion yen last week, marking their first weekly net buying in five weeks, finance ministry data showed. ($1 = 105.2300 yen)
Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Sherry Jacob-Phillips
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