Jan 26 (Reuters) - Foreign investors were big buyers in Japanese stocks in the week ended Jan. 20 as the Bank of Japan's decision to continue with an ultra-easy policy boosted sentiment.
Overseas investors obtained Japanese equities worth a net of 456.12 billion yen ($3.53 billion) in their biggest weekly net buying since Nov. 25, data from exchanges showed.
They drew 357.33 billion yen worth of derivatives and 98.79 billion worth of cash equities.
The Bank of Japan's decision to maintain ultra-low interest rates and continue with its 0.5% cap for the 10-year bond yield helped Japanese shares scale a one-month-high last week.
The Nikkei share average surged 1.66% and the Topix index jumped 1.25%, as both indexes posted their second weekly gain last week.
Meanwhile, foreign investors liquidated a net 1.84 trillion yen worth of Japanese bonds, marking a second consecutive week of outflows.
On the other hand, Japanese investors remained net buyers of foreign equities for an eighth successive week with net purchases worth 260.3 billion yen, although they exited 296.1 billion yen worth of overseas bonds after two weeks of net purchases. ($1 = 129.2400 yen)
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Krishna Chandra Eluri)
