Foreigners turn net sellers of Japanese stocks, lock in 2024 gains

Jan 9 (Reuters) - Foreign investors net sold Japanese stocks in the week ended Jan. 4, taking advantage of 2024 gains while aiming to reduce risks amid an unusually long market closure.

Foreigners sold a net 74 billion yen ($468.30 million) worth of Japanese stocks during the week, following net accumulations of approximately 562.7 billion yen in the previous week.

They acquired approximately 1.23 trillion yen worth of Japanese stocks in 2024, primarily in the first half of the year and shed around 4.77 trillion yen worth of shares in the second half.

The Nikkei index .N225 posted a 19.22% gain last year, marking its second-best annual performance in 11 years. However, after trading resumed on Monday, the index has dropped by 1.15% this week as investors began locking in profit following the recent rally.

Foreigners bought Japanese debt securities worth nearly 227.5 billion yen last week, halting a three-week selling trend. Overseas investors snapped up 154.8 billion yen worth of long-term bonds and 72.7 billion yen worth of short-term instruments.

In parallel, Japanese investors added a net 325.1 billion worth of foreign equities, registering a fourth consecutive weekly net purchase.

They, however, withdrew out of foreign bonds for a third straight week, with a net 331.8 billion yen worth of selling in long-term and a net 4.9 billion yen worth of disposals in short-term debt securities.

($1 = 158.0200 yen)

Foreign flows into Japanese stocks https://reut.rs/3SQDye4

Foreign flows into Japanese debt securities https://tmsnrt.rs/3nsVz5d

Japanese investments in stocks abroad https://tmsnrt.rs/3nxoepG

Japanese investments in overseas debt securities https://tmsnrt.rs/3JW3oI3

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Sherry Jacob-Phillips)

((gaurav.dogra@thomsonreuters.com; +91(080) 67496197;))