Foreign investors net buyers of Japanese stocks for third week

Aug 19 (Reuters) - Foreign investors were net buyers of Japanese shares in the week to August 13 as corporate earnings continued to boost confidence, though concerns about the fast-spreading Delta coronavirus variant capped the inflows.

Foreigners bought Japanese shares worth a net 351.5 billion yen ($3.20 billion), down from 398.7 billion the previous week, data from Japanese exchanges showed.

They purchased derivatives worth a net 193.89 billion yen and 157.62 billion yen in cash equity markets.

Meanwhile, cross-border investors sold Japanese bonds worth a net 2.81 trillion yen, marking their first weekly net selling in three, finance ministry data showed.

Corporate earnings continued to boost investor sentiment last week with Bridgestone, Toho Zinc, staffing and publishing firm Recruit Holdings all posting strong earnings and upbeat outlooks.

Last week, Japanese stocks gained for a second straight week. The Topix index climbed 1.4% and the Nikkei share average added 0.6%.

Both indexes have however, are down more than 2% this week as a record rise in new COVID-19 infections raises concerns about a delay in economic recovery.

Japanese investors sold a net 85.4 billion yen in overseas equities but purchased a net 869.5 billion yen in foreign bonds last week, finance ministry data showed. ($1 = 109.9200 yen)

Reporting by Gaurav Dogra and Patturaja Murugaboopathy; editing by Jason Neely