June 10 (Reuters) - Foreign investors turned net sellers of Japanese shares in the week to June 4, on caution as investors awaited key U.S. economic reports that could intensify worries over inflation and an early tapering from the Federal Reserve.
Foreigners sold a net 128.58 billion yen ($1.17 billion) worth of Japanese stocks last week, compared with a net 552.52 billion worth of purchases in the previous week, data from Japanese exchanges showed.
They sold derivatives worth a net 189.14 billion yen but purchased 181.7 billion yen in cash equities markets last week.
Meanwhile, cross-border investors bought a net $1.89 trillion yen worth of Japanese bonds, finance ministry data showed.
Concerns about U.S. inflation and prospects of an earlier tapering of stimulus measures by the Fed have sapped appetite for risk assets such as Japanese stocks in recent weeks, despite the domestic vaccination programme gaining traction.
A weaker U.S. payrolls report at the end of last week eased some concerns over an early tapering from the Fed, however, for further clues, investors await U.S. inflation data due later this week.
Japanese indexes were mixed last week. The Topix index added 0.6%, marking a third straight week of gains, while the Nikkei share average slipped 0.7%.
Meanwhile, Japanese investors purchased overseas equities worth a net 67.5 billion yen and a net 908.3 billion yen worth of Japanese bonds last week, finance ministry data showed. ($1 = 109.4600 yen)
Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Christopher Cushing