March 21 (Bloomberg) -- Foreign investors last week sold the most Japanese shares since the Black Monday market crash in October 1987 after the yen rose to a 12-year high, clouding the profit outlook for exporters.

Outflows from Japanese stocks by foreign investors were 922.7 billion yen ($9.26 billion) on a net basis in the week ended March 14, according to figures released today by the Tokyo Stock Exchange. That was the most since the period ended on Oct. 23, 1987. Japanese stocks have attracted net buying on a weekly basis by overseas investors once this year.

The yen strengthened to as high as 95.76 to the dollar on March 17, the highest since October 1995. Speculation over Bear Stearns Cos.'s difficulties helped send the Topix 1.9 percent lower on March 14, capping a two-week, 9.9 percent plunge.

The Japanese government's failure after two attempts to name a new Bank of Japan governor also hurt sentiment.

``The stronger yen, financial uncertainty, the Bank of Japan head problem and fears the next Tankan will show economic deterioration are all heavy burdens for this market,'' Jyusaku Matsuo, a Tokyo-based analyst at Mito Securities Co., said.

Japanese stocks were the worst performers among the world's 10 largest markets last year. The nation's benchmark Topix index has slumped 17 percent this year.

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net.

Last Updated: March 21, 2008 06:19 EDT