Benchmark indexes in Tokyo recovered from the earlier losses of 3% to close down 1%, tracking the decline on Wall Street. Japan revised lower its second quarter GDP growth, and the overall bank lending rose in August.
Japan's benchmark indexes registered sharp losses in the week as the rising yen and renewed worries about the U.S. economic slowdown dominated market sentiment.
Stocks in Shanghai and Shenzhen headed lower on the final day of a volatile week. Hong Kong issued its most severe weather alert of the year, forcing all business activities to a halt.
Japan's nominal wages rose faster than inflation for the second month in a row, supporting the case for a rate hike later in the month. The yen advanced and extended the weekly rise to 2%, keeping the stock market enthusiasm in check.
China indexes remained under pressure and extended weekly losses. Property stocks advanced in the hopes of a rate cut later this month, and oil producers fell after the crude oil price dropped to an eight-month low.
Japan indexes plunged as much as 5% following widespread losses in overnight trading in New York after U.S. economic slowdown worries resurfaced. Japan's service sector expanded for the seventh month in a row in August, but the growth rate moderated.
China's private service sector growth moderated in August, according to a private survey. Market indexes in Shanghai and Hong Kong dropped as much as 1% following sharp losses in overnight trading in New York.
Early morning rally fizzled in Tokyo after investors turned cautious and debated the future rate path. Tech stocks and industrial exporters traded down, but banks advanced. The yen held firm but retained an upward bias in volatile trading.
Weak earnings added to the ongoing worries of a weakening economic backdrop and faltering consumer sentiment. Banks and real estate developers extended declines, but tech stocks held up.
Japan's capital spending in the second quarter accelerated from the first quarter and extended the increase for the thirteenth quarter in a row. Manufacturing sector activities remained in contraction in August amid weak trends in export orders from key markets.
Japan's benchmark indexes erased August losses, and the yen stabilized after surging following the hawkish shift by the Bank of Japan. Japan's jobless rate increased, and Tokyo-area inflation accelerated for the fourth month in a row.
Market indexes in Tokyo declined for the third day in a row amid a weakness in semiconductor stocks. The yen traded in a tight range after comments from BOJ Deputy Governor calmed market nerves.
