Japanese stocks log biggest weekly foreign inflow in over four months

Dec 1 (Reuters) - Foreign investors were massive buyers of Japanese stocks in the week ended Nov. 25, as minutes from the Federal Reserve's latest meeting boosted hopes that the U.S. central bank would slow the pace of its interest rate hikes.

Foreigners poured a net 987 billion yen ($7.24 billion) into Japanese equities last week, marking their biggest weekly net buying since July 8, data from exchanges showed.

Overseas investors purchased derivatives worth a net 584.01 billion yen and secured cash equities of 402.99 billion yen. They, however, are still net sellers of 2.36 trillion yen worth of Japanese stocks so far this year, according to the data.

Last week, the Topix index jumped 2.6% and hit its highest in more than 10 months, while the Nikkei share average added 1.4%.

Non-native investors withdrew a net 5.53 trillion yen out of Japanese bonds last week, after having invested 5.88 trillion yen in the previous week, which was their biggest weekly net buying since January 2021.

Japanese investors exited 239 billion yen worth of foreign equities last week and disposed of 254.1 billion yen worth of overseas bonds in a sixth consecutive week of net selling, the data showed.

($1 = 136.3800 yen)

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