They withdrew 367.31 billion out of cash equities but purchased derivatives worth a net 98.7 billion yen, after two consecutive weeks of net selling. Fears about the rising risks of a slowdown in the U.S. economy stemming from the ongoing tightening monetary policy, weighed further on the market last week. Concerns also rose about Japan's economic outlook, as data showed that industrial production dropped 7.2 per cent in May, its biggest decline in two years.
The Nikkei share average fell 2.1 per cent last week, while the Topix index dropped 1.2 per cent. Meanwhile, cross-border investors purchased Japanese bonds worth a net 1.16 trillion yen, marking their first weekly net buying in four weeks, finance ministry data showed. Japanese investors however, disposed of overseas bonds worth 1.51 trillion yen in a sixth straight week of net selling, but acquired foreign equities worth 1.19 trillion yen, their biggest net purchase since Dec. 3.