Foreign investors turned net sellers of Japanese stocks in the week ending August 7, with Japan Exchange Group data showing a net outflow of ¥368.5 billion after a ¥392.5 billion net inflow a week earlier. The reversal points to weaker near-term sentiment toward Japanese equities as markets weigh Bank of Japan policy signals, global economic headwinds and currency moves. Analysts cited a firmer yen, which can hurt exporter earnings, and expectations that the Bank of Japan may further adjust yield curve control (the central bank’s bond-yield policy), a shift that could affect equity valuations. The move also fits a broader pattern of volatile cross-border flows as investors reassess risk, take profits or rotate into safer assets. The data matters because foreign buying has been a major support for Japanese shares over the past year, alongside corporate governance reforms and a weak yen. Investors are now watching whether the latest selling pressures the Nikkei 225 and TOPIX or proves to be a temporary one-week setback.