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 Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Play Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Sophie Earnshaw talks through what Xi Jinping's 'new era' means for investors. and why Chinese tech offers some of best growth stocks in the world.

Read More
Your Business: Cover Star Club

Profile: JM Finn on why the future is with financial planners

Profile: JM Finn on why the future is with financial planners

There is a lot of work on pension consolidation and Sipps have been a big driver there, says JM Finn chief executive

Wealth Manager on Twitter