Dec 8 (Reuters) - Japanese investors turned net sellers of foreign equities and bonds in November as the yen strengthened on hopes that the Federal Reserve would scale back its rate hikes after taking an aggressive stance to control inflation this year.

Analysts expect a stronger yen could prompt local investors to divert money outside into domestic markets.

According to data from Japan's Ministry of Finance, Japanese investors sold a net 1.39 trillion yen ($10.16 billion) worth of foreign equities in November, marking their first monthly net disposal since August.

They also exited 1.33 trillion yen worth of overseas bonds last month in a third straight month of net selling.

So far this year, Japanese investors have purchased a net 1.69 billion yen worth of foreign equities as of November, but withdrew a net 20.91 trillion yen out of overseas bonds.

Between January and October, local investors purchased a net 2.34 trillion yen worth of U.S. equities but disposed of 15.19 trillion worth of U.S. bonds. The data showed that they sold 4.07 billion yen worth of bonds and 152 billion yen worth of equities in Europe. ($1 = 136.8500 yen)

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Japanese investments in overseas assets Link
Japanese investments in US and European assets Link

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Reporting by Gaurav Dogra and Patturaja Murugaboopathy in
Bengaluru; Editing by Kim Coghill