Stocks in Japan struggled on the worries that price decline may deepen. The GDP deflator in the last quarter to December dropped at the fastest pace in three decades by 3%. Quarterly GDP grew at 4.6% annual rate. Commodities and resource stocks dropped.
5:00 AM New York, 7:00 PM Tokyo – Stocks in Japan struggled on the worries that price decline may deepen. The GDP deflator in the last quarter to December dropped at the fastest pace in three decades by 3%. Quarterly GDP grew at 4.6% annual rate. Commodities and resource stocks dropped.
Japanese stocks fell after a decline in deflator index, earnings worries and a weakness in commodities on the monetary policy tightening in China.
Gross domestic product in the three months to December increased at an annualized rate of 4.6%
In Tokyo trading Nikkei 225 Stock Average fell 0.8% or 78.89 to 10,013.30, and the broader Topix Index declined 1% to 883.47.
In the first section of the Tokyo Stock Exchange 8.5 billion shares valued at 443 billion yen were traded and in the second section 342 million shares worth 2.5 billion yen changed hands.
Of the Nikkei 225 index stocks, 39 increased, 177 fell, and 9 were unchanged. Shinsei Bank led decliners with a drop of 6.7% on news it intends to terminate its merger with Aozora Bank.
Japan’s GDP Rises 4.6% in December
Cabinet Office reported today that the country’s gross domestic product rose at an annual rate 4.6% in the fourth quarter faster than estimate of between 3.5% and 3.7%.
The economy gained 1.1% from the previous quarter, while third quarter economic growth was revised to zero.
Domestic demand gained 0.6% and private demand advanced 0.7%. Private consumption also increased 0.7% and consumption of households gained by a similar margin.
However, private residential investment dropped 3.4% and private non-residential investment edged up 1%.
The GDP deflator, a measure of market prices, declined 3% in the quarter compared to a year ago, the largest decline since first quarter 1981.
Tokyo Condo Offerings Fall 9.9% in Jan
Real Estate Economic Institute said today the number of new condominiums sales in the Tokyo metropolitan area plunged 9.9% to 1,586 units in January.
The report notes that purchase agreements were signed for 70.3% or 1,115 units.
Approximately 2,700 units will be released in February.
Shinsei, Aozora to Terminate Merger Plan
Japan Today reported Saturday Shinsei Bank and Aozora Bank called off their merger on the difference in market focus and operations.
Shinsei prefers to use India developed lending system and Aozora had sought to keep its domestic system in place.
In addition, the two lenders could not agree on the customer focus. Aozora wants to focus on extending loans to mid market and small businesses and Shinsei would continue its focus on retail borrowers and home lending.
