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TOKYO: Foreigners stepped up selling in Japanese shares last week, as concerns over inflation and expectations of a tighter US monetary policy, dented risk appetite.

Stocks worth 582.91 billion yen ($5.08 billion) were offloaded by cross-border investors in the week to Jan. 21, the most since Dec. 3, data from Japanese exchanges showed.

Investors sold a net 304.63 billion yen in cash equity markets and a net 278.28 billion yen worth of derivatives.

Outsiders also sold Japanese bonds of 1.95 trillion yen last week after three straight weeks of net buying, finance ministry data showed.

Amid inflationary fears last week, investors sold growth stocks including Japanese tech heavyweights, in anticipation of the US Federal Reserve’s hawkish stance on monetary policy, ahead if its meeting earlier this week.

Sony Group 6758.T lost 8.8% last week as gaming rival Microsoft said that it will buy developer Activision Blizzard, while Toyota Motor dropped 4.4% on concerns over operational impact from rising COVID-19 infections and chip shortages.

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