Foreigners turn net sellers of Japanese stocks on pandemic concerns

April 30 (Reuters) - Foreign investors turned net sellers of Japanese equities in the week ended April 23 on concerns that Japan’s stricter curbs to contain the virus will tamper its economic growth, as the country saw a surge in domestic infections this month.

Overseas investors sold a net 296.24 billion yen ($2.72 billion) worth of stocks last week, marking their first net selling in three weeks, data from Japanese exchanges showed.

They sold a net 279.03 billion yen worth of derivatives and 17.21 billion yen in cash equities markets.

Japan declared “short and powerful” states of emergency in its biggest cities last week, as it struggled to contain a resurgent coronavirus pandemic.

Japanese equities benchmarks - the Topix index and the Nikkei share average dropped over 2% last week.

The two indexes have slipped more than 0.5% this week as a slew of corporate earnings failed to meet investors’ high expectations for strong profit recovery.

Meanwhile, Japanese investors sold overseas equities worth 318.6 billion yen last week, marking a seventh consecutive week of outflow, finance ministry data showed.

($1 = 108.7800 yen)

Reporting by Gaurav Dogra and Patturaja Murugaboopathy;