Japanese sharesdrifted lower on Monday as weaker-than-expectedeconomic dataand a post-election lull capped moves.
The Nikkei 225 Index fell 0.2% to close at 56,806.41, while the broader Topix slid 0.8% to 3,787.38. Preliminary October-December gross domestic product (GDP) figures showed that the Japanese economy missed economists’ median forecast due to softer capital spending, although it reversed the previous quarter’s contraction.
“I figured the GDP figures would be treated as past figures, but seeing the Nikkei average struggling to gain, there may be some slight impact,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
The rally in Japanese equities following Prime Minister Sanae Takaichi’s snap-election victory earlier this month may also have run its course for now, Ichikawa added.
Rubber makers and banks were the biggest decliners among the Topix 33 industry groups. Bridgestone dropped 6.5% after the tyre maker’s full-year net profit forecast missed analysts’ estimates.
The largest loser by percentage on the Nikkei was medical equipment maker Olympus, tumbling nearly 13% after disappointing earnings. Resona Holdings, a major domestic lender, slumped 8%.
Bucking the overall sombre mood, shares of Sumitomo Pharma reached their daily limit, surging 20.2% to lead the Nikkei’s gainers by percentage after the drugmaker said Japan’s health ministry would review its iPS cell-derived therapy for advanced Parkinson’s disease this week.
Furniture maker Nitori Holdings extended its rally to nine sessions, the longest on record for a roughly 28% advance over the stretch. It ended Monday’s session up 9.4%. Credit card company Credit Saison jumped 7.4%.
There were 84 advancers on the Nikkei index against 140 decliners.
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