June 13 (Reuters) - Japanese investors turned into net sellers of foreign equities in May for the first time in three months, as global stocks faced a decline due to a delay in raising U.S. debt ceiling, which sparked fears of a potential default.
They sold 1.08 trillion yen ($7.74 billion) of overseas equities on a net basis in May in their first monthly net selling since February, finance ministry data showed.
Meanwhile, Japanese investors purchased overseas bonds of 3.38 trillion yen in May after about 1.36 trillion yen worth of net selling in April.
They bought 3.08 trillion yen worth of long-term bonds and 303 billion yen worth of short-term bonds.
Banks were net buyers of 3.29 trillion yen of long-term bonds, while insurance companies sold a marginal 56 billion yen.
The data showed Japanese investors have poured a net 873.94 billion yen into U.S. equities this year as of April, when purchases in European stocks stood at 203.06 billion yen.
Global markets experienced the weight of debt ceiling concerns last month, as some investors grappled with the potential repercussions of a U.S. debt default on financial markets.
However, earlier this month, President Joe Biden signed a bill that suspended the U.S. government's $31.4 trillion debt ceiling, averting what would have been an unprecedented default. ($1 = 139.5300 yen)
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Sohini Goswami)
