March 25 (Reuters) - Weekly net purchases of Japanese equities by foreign investors were the highest in six weeks, as risk sentiment got a boost after the U.S. Federal Reserve projected a rapid jump in economic growth and pledged for low policy rates.
Overseas investors purchased a net 564.99 billion yen ($5.19 billion) worth of stocks in the week ended March 19, a second straight week of net buying, data from Japanese exchanges showed on Thursday.
They purchased 408.88 billion yen in cash equities markets and 156.11 billion yen worth of derivatives.
U.S. Federal Reserve projected a 6.5% economy economic growth this year and pledged to keep interest rates low despite an expected surge of inflation.
The Topix index added 3.13% in a third straight week of gains, though the Nikkei share average gained only 0.25% after a setback as the Bank of Japan decided to contain its ETF purchases to only funds linked to the broader Tokyo stock index Topix.
Both indexes have shed about 3% this week on renewed concerns about the return of coronavirus lockdowns in Europe that dented hopes of a pick-up in global economic growth.
Japanese investors sold overseas equities worth 274.7 billion yen last week, finance ministry data showed.
($1 = 108.9500 yen)
Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Sherry Jacob-Phillips