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Asian stocks mixed despite solid Japan GDP report; Nikkei down 1.08%

Published 05/15/2013, 11:20 PM
Updated 05/15/2013, 11:21 PM
USD/JPY
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Investing.com - Asian stocks traded mixed Thursday despite a stronger-than-expected first-quarter GDP report out of Japan, the world’s third-largest economy.

In Asian trading Thursday, Japan’s Nikkei 225 fell 1.08% even after Japan's Cabinet Office said earlier Thursday that the country’s first-quarter GDP surged 3.5%, easily topping expectations calling for 2.7% growth. Perhaps more importantly, private consumption, which accounts for 60% of Japan’s GDP, represented 2.3% of the increase.

On a nominal basis, Japan’s GDP increased 1.5%, the best increase in a year. Japan’s first-quarter GDP report serves as the latest sign that Prime Minister Shinzo Abe’s yen devaluation tactics are working. Financial services firms were among the shares that dragged Japanese stocks lower.

Hong Kong’s Hang Seng rose 0.27% while the Shanghai Composite added 0.59%. Due in part to compelling to valuations, Chinese stocks have gained steam over the past month, joining an Asian party that for much of this year has been led by Japanese equities.

Australia’s S&P/ASX 200 Index fell 0.20% amid weakness in mining and materials shares due to falling gold prices.

New Zealand’s NZSE 50 dropped 0.21% even after the country forecast a fiscal 2015 budget surplus. New Zealand is expected to have a fiscal 2013 budget deficit of NZD6.29 billion. The rebuild of Christchurch is expected to help facilitate the surplus.

Earlier Thursday, the New Zealand Treasury forecast 2013-2014 GDP growth of 2.3% and 2014-2015 growth of 2.8%. The economy there grew 3% last year.

South Korea’s Kospi jumped 0.96% as USD/JPY fell. Singapore’s Straits Times Index inched down 0.02% while S&P 500 futures nudged down 0.01%. The benchmark U.S. index rose 0.51% Wednesday.


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