Japan's June Quarter GDP Rises 2.6%, Nikkei Eases in Thin Trading

Hiruki Nakamura
12 Aug, 2013
New York City

Stocks in Tokyo declined after gross domestic product increased less than expected but consumer spending rose and prices across the economy. Real estate stocks led the decliners. Tire maker Bridgestone revised annual income outlook.

[R]4:30 PM Tokyo – Stocks in Tokyo declined after gross domestic product increased less than expected but consumer spending rose and prices across the economy. Real estate stocks led the decliners. Tire maker Bridgestone revised annual income outlook.[/R]

Japanese stocks closed lower in thin trading after gross domestic product increased less than expected in June quarter.

The Nikkei 225 Stock Average fell 95.76 to 13,519.43 and the Topix slid 6.29 to 1,134.62.

Gross domestic product increased at annual rate of 2.6% in the quarter ending to June from the revised 3.8% advance in the previous quarter, the Cabinet Office said today.

Consumer spending contributed 1.9 percentage points and inventories subtracted 1.1 percentage points.

The yen decreased 0.5% to 95.93 against one dollar after the release of GDP data.

Stocks in Review

Toyota Motor Corp added 20 yen to 6,190 yen and Honda Motor Co. up 25 yen to 3,725 yen. Nissan Motor Co Ltd slipped 15 yen to 1,023 yen.

Sony slid 11 yen to 1,932 yen. Canon Inc climbed 65 yen to 3,130 yen. Nikon dropped 39 yen to 1,687 yen.

Fanuc Corp added 20 yen to 15,010 yen and Softbank Corp declined 250 yen to 5,990 yen.

Seven & I Holdings Co lowered 10 yen to 3,575 yen and Fast Retailing Co. slumped 350 to 31,300 yen.

Mitsubishi UFJ Financial Group slid 7 yen to 602 yen and Sumitomo Mitsui Financial Group slipped 80 yen to 4,450 yen.

Bridgestone Corporation jumped 2.8% to 3,445 yen after the Japan based tire maker reported sales in the year ending in June climbed 14.5% to 1,705 billion yen from 1,489 billion yen. Net income in the year surged 55.5% to 117 billion yen compared to 75.3 billion yen.

Citizen Holdings Co., Ltd. surged 16.6% to 640 yen after the watch maker lifted its earnings outlook for the year.

Yokogawa Electric Corporation plunged 9.2% to 1,229 yen after the control equipment maker reported net sales in the first quarter ending in June climbed 7.6% to 80.76 billion yen from 75.04 billion yen. Net income in the quarter tumbled 63.3% to 1.49 billion yen compared to 4.06 billion yen and diluted earnings per share plunged 5.78 yen from 15.76 yen a year earlier.