Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Japan’s GDP contraction weighs on Asian markets

Japan’s GDP contraction weighs on Asian markets

Asian shares declined on Monday in morning trade as Japan’s economy contracted at the fastest pace since last year’s earthquake, overshadowing an increase in China’s exports.

The MSCI Asia Pacific Index lost 0.2% to 121 as of 10:54 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average lost 0.6% as a report showed gross domestic product shrank an annualised 3.5% in the three months through September. Australia’s S&P/ASX 200 Index was little changed and South Korea’s Kospi Index dropped 0.4%. Hong Kong’s Hang Seng Index climbed 0.1% while the Shanghai Composite Index added 0.4%.

China’s exports increased 11.6% from a year earlier, the Beijing-based customs administration said in a statement. The figures exceeded the 10% estimate in a Bloomberg News survey of economists. Imports gained 2.4%, the same pace as the previous month. The trade surplus surged to $32 billion, the biggest in almost four years.

In the U.S., negotiations began to prevent the "fiscal cliff" by hammering out a compromise to cut the U.S. deficit before nearly $600 billion worth of spending cuts and tax increases kick in early next year.

In Europe, prospects for a bailout for Greece remained unclear even after the debt-stricken country on Sunday won a parliamentary approval for the 2013 budget law.

Fast Retailing Co., Asia’s biggest clothing retailer, lost 0.7% after Japan’s growth data. QBE Insurance Group Ltd. plunged 10%, the most in 10 months, after Australia’s largest insurer by market value said it will issue debt due to losses from hurricane Sandy in the U.S.

Li & Fung Ltd., a supplier of clothes and toys to Wal-Mart Stores Inc., added 1.1% after Chinese exports expanded at the fastest rate since May.

Lynas Corp., builder of the world’s biggest rare-earth refinery in Malaysia, fell 8.1% in Sydney after selling A$150 million of new shares.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter