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Foreign inflows in Japanese stocks rise as tech optimism boosts demand

May 14 (Reuters) - Foreign flows into Japanese stocks jumped to a three-week high in the seven days to May 9 as a rally in AI-linked stocks and strong tech and banking sector earnings bolstered risk sentiment.

Foreigners pumped a net 1.44 trillion yen ($9.12 billion) into Japanese stocks in the week as they extended their buying run into a sixth successive week, data from the Ministry of Finance(MOF) showed on Thursday.

The Nikkei 225 .N225 logged a record 63,799.32 on Thursday as AI-linked demand and rising interest rates lifted earnings for Japanese tech suppliers and banking stocks.

Tech sector suppliers Sumco 3436.T, Kioxia 285A.T and Ibiden 4062.T set record highs in the current week. Last week, Sumco, Kioxia and Ibiden gained 41.26%, 22.19% and 16%, respectively.

Foreigners invested a record 9.41 trillion yen into domestic stocks in April, MOF data showed on Wednesday.

Japanese bonds, meanwhile, attracted a net 474.1 billion yen of foreign capital in the most recent week after having faced outflows for two straight weeks.

Foreigners bought long-term bonds of 106.2 billion yen and short-term bonds of 367.9 billion yen in the week.

Elsewhere, Japanese investors offloaded 593.6 billion yen of foreign shares, when compared with net sales of 2.43 trillion yen the prior week.

They, meanwhile, invested 1.64 trillion yen in foreign long-term bonds as they remained net buyers for a second straight week.

($1 = 157.9600 yen)

Foreign flows into Japanese stocks https://reut.rs/47spgbA

Foreign flows into Japanese debt securities https://reut.rs/46jRa8B

Japanese investments in stocks abroad https://reut.rs/4n6yajq

Japanese investments in overseas debt securities https://reut.rs/4gg1uC8

 (Reporting by Gaurav Dogra; Editing by Sonali Paul)

 ((gaurav.dogra@thomsonreuters.com; +91(080) 67496197;))

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