(Reuters) -Japanese investors divested significant holdings in foreign stocks in the week to November 1, as they turned cautious amid hawkish remarks from some U.S. Federal Reserve officials and favoured locking in profits after the recent market rally.

Japanese investors liquidated a net 581.1 billion yen ($3.85 billion) worth of foreign stocks in their largest weekly sales since October 4, according to data from Japan’s Ministry of Finance.

The U.S. central bank should not have cut interest rates in October and should not do so again in December, Dallas Fed President Lorie Logan said last week, citing a ‘balanced’ labor market and inflation level that looked likely to stay above policymakers’ 2% goal for too long.

The MSCI World Index is set for its first weekly loss in four weeks, fa

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