Revised Japan GDP figures eyed by Tokyo investors next week

AFP, TOKYO: A revision of Japanese GDP will be a key trading cue for Tokyo investors next week, after the European Central Bank's revised stimulus plan disappointed investors and sent Asian markets into negative territory. Initial economic growth estimates last month showed Japan slipped into recession during the six months to September. But the revised figures, due Tuesday, may instead show flat or modest growth in the world's number three economy during the July-September quarter, analysts said.
"The key release of the coming week will be the second preliminary estimate of Q3 GDP," research house Capital Economics said in a report. "A jump in capital spending suggests that output may have been flat last quarter instead of the initially reported 0.2 percent quarter-on-quarter decline." Japanese Prime Minister Shinzo Abe's growth blitz, dubbed Abenomics, has taken a hit as a string of weak data cast doubt on the effectiveness of his plan.The economy has slipped into a recession twice in as many years, and Tokyo is compiling an extra budget to counter the downturn. The Bank of Japan is also expected to unleash further monetary easing over the coming months.
On Friday, Tokyo joined a global equities rout after ECB policymakers decided not to expand the size of the bank's bond purchase programme as was hoped and lowered its deposit interest rate by less than expected. ECB chief Mario Draghi said the bank would broaden the types of bonds it purchases and extend the end date of the bond purchase programme. "The market was hoping for some Draghi magic, but instead got some Draghi shock," Mitsuo Shimizu, deputy general manager at Japan Asia Securities Group, told Bloomberg News. At the close, the benchmark Nikkei 225 index was down 2.18 percent, or 435.42 points, at 19,504.48. It fell 1.91 percent over the week. The Topix index of all first-section shares dropped 1.80 percent, or 28.92 points, to 1,574.02. The broad-based index was down 1.28 percent this week. In currency markets, the euro lost some of its gains after soaring on the ECB news. On Friday afternoon, it was sitting at $1.0876 and 133.52 yen, from $1.0947 and 134.23 yen in New York. The dollar rose to 122.77 yen from 122.61 yen Thursday in New York, but still off levels seen in Asia earlier Thursday.

Revised Japan GDP figures eyed by Tokyo investors next week

AFP, TOKYO: A revision of Japanese GDP will be a key trading cue for Tokyo investors next week, after the European Central Banks revised stimulus plan disappointed investors and sent Asian markets into negative territory. Initial economic growth estimates last month showed Japan slipped into recession during the six months to September. But the revised figures, due Tuesday, may instead show flat or modest growth in the worlds number three economy during the July-September quarter, analysts said. The key release of the coming week will be the second preliminary estimate of Q3 GDP, research house Capital Economics said in a report. A jump in capital spending suggests that output may have been flat last quarter instead of the initially reported 0.2 percent quarter-on-quarter decline. Japanese Prime Minister Shinzo Abes growth blitz, dubbed Abenomics, has taken a hit as a string of weak data cast doubt on the effectiveness of his plan.The economy has slipped into a recession twice in as many years, and Tokyo is compiling an extra budget to counter the downturn. The Bank of Japan is also expected to unleash further monetary easing over the coming months. On Friday, Tokyo joined a global equities rout after ECB policymakers decided not to expand the size of the banks bond purchase programme as was hoped and lowered its deposit interest rate by less than expected. ECB chief Mario Draghi said the bank would broaden the types of bonds it purchases and extend the end date of the bond purchase programme. The market was hoping for some Draghi magic, but instead got some Draghi shock, Mitsuo Shimizu, deputy general manager at Japan Asia Securities Group, told Bloomberg News. At the close, the benchmark Nikkei 225 index was down 2.18 percent, or 435.42 points, at 19,504.48. It fell 1.91 percent over the week. The Topix index of all first-section shares dropped 1.80 percent, or 28.92 points, to 1,574.02. The broad-based index was down 1.28 percent this week. In currency markets, the euro lost some of its gains after soaring on the ECB news. On Friday afternoon, it was sitting at $1.0876 and 133.52 yen, from $1.0947 and 134.23 yen in New York. The dollar rose to 122.77 yen from 122.61 yen Thursday in New York, but still off levels seen in Asia earlier Thursday.