Foreign investors turn net buyers of Japanese stocks in the week to Jan 11

Jan 17 (Reuters) - Foreign investors were net buyers of Japanese stocks in the week to Jan. 11, buoyed by a rally in chip-related shares and optimism over domestic corporate outlook.

They snapped up 313.3 billion yen ($2.02 billion) worth of Japanese stocks on a net basis last week, following net sales of 74 billion in the prior week, data from Japan's Ministry of Finance showed.

Shares of chip-making equipment maker Tokyo Electron 8035.T, chip-testing equipment maker Advantest 6857.T and chip-making device supplier Disco 6146.T all surged over 10% last week, although the Nikkei .N225 fell 1.77%.

The Nikkei hit 38,055.68 on Thursday, its weakest level since Dec. 2, 2024, while the chips-related trio of stock also face significant pressure amid concerns over a strengthening yen and potential rate hikes by the Bank of Japan (BOJ) next week.

Meanwhile, foreign investors sold off 501.2 billion yen in long-term Japanese bonds on a net basis, marking a third week of sales in the past four.

Short-term bills attracted a record 2.58 trillion yen in foreign inflows, the highest since May 4, 2024.

At the same time, Japanese investors racked up a sharp 589.1 billion yen worth of foreign equities, their biggest weekly net purchase since Aug. 24, 2024.

They also snapped up 173.7 billion yen worth of short-term debt securities and 756.7 billion yen worth of long-term bonds following three consecutive weeks of net sales.

($1 = 155.4200 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 Savio D'Souza)

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