Foreign outflows from Japan stocks hit four-week high on Europe lockdown worries

April 1 (Reuters) - Foreign investors turned net sellers of Japanese equities in the week ended March 26, as concerns about fresh lockdowns in Europe due to rising coronavirus cases stoked fears of a slowdown in economic recovery.

Overseas investors sold a net 388.62 billion yen ($3.51 billion) worth of stocks last week, the biggest since the week ended Feb. 26, data from Japanese exchanges showed.

They sold a net 372.98 billion yen in cash equities markets and 15.64 billion yen worth of derivatives.

Fresh lockdowns in Germany and France rattled investors confidence about a faster global recovery, prompting some to book profits in Japanese shares last week, which were trading near a 30-year high.

The Nikkei share average dropped 2.1% last week and the Topix index slipped 1.4%.

Japanese indexes are mixed this week with the Nikkei index up about 0.7%, while the Topix index has shed 1.3%, dragged down by financial stocks.

A growing uncertainty about the fallout from the margin calls that brought down New York-based hedge fund Archegos Capital has pulled down financial shares, in particular.

Meanwhile, Japanese investors sold overseas equities worth 368 billion yen last week, the biggest in four weeks, finance ministry data showed.

Japanese investors have offloaded about 2.73 trillion yen worth of cross-border equities this year as of last week. ($1 = 110.7400 yen)

Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Rashmi Aich