Finance Markets

November 13, 2006

Tokyo markets lower ahead of GDP figures

Permalink: Tokyo markets lower ahead of GDP figures

Filed under: Equities, Economy, Asia, Japan

Tokyo equities markets saw decline on Monday as the Nikkei 225 fell 0.6 percent to 16,022.46 after going below 16,000 earlier in the day. The Topix index was 0.8 percent lower to 1,568.76.

The losses came on anticipated gross domestic product figures, due Tuesday, which many expect will say that the Japanese economy only grew at a 1 percent annual rate in the third quarter. If these figures turn out to be correct, it would be the slowest expansion in the Japanese economy since 2004. Furthermore, data released Friday showed that machinery orders were down 7.4 percent in September from the same month last year. Both news items increased concerns that Japan’s economic recovery is losing momentum.

Declining demand for fixed-line telephones led to a 9.4 percent drop in operating profits in the fiscal first half for NTT, which dropped 1 percent on the session to ¥571,000.

Video game and slot machine maker Sega Sammy fell 8.4 percent to ¥2,030 on a full-year profit prediction that was lowered by 20 percent.

In the retail sector, Fast Retailing closed 2.3 percent lower to ¥9,990. In other domestically-focused sectors, SMFG, one of Japan’s leading banks, dropped 1.6 percent to ¥1.22 million, while machinery products manufacturer Fanuc fell 0.9 percent to ¥10,360.

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