Japan Consumer Spending Plunges 5.2%, GDP Contraction Revised to 6.1%

Hiruki Nakamura
13 Aug, 2014
New York City

Stocks in Tokyo traded sideways after a week of volatile trading and the second quarter GDP contraction was revised to 6.8% from the previous estimate of 6.1%. Consumer spending in the quarter plunged 5.2%.

[R]4:30 PM Tokyo – Stocks in Tokyo traded sideways after a week of volatile trading and the second quarter GDP contraction was revised to 6.8% from the previous estimate of 6.1%. Consumer spending in the quarter plunged 5.2%.[/R]

Stocks in Japan traded sideways and the government revised lower the GDP contraction in the second quarter and consumer spending tumbled in the period.

The Cabinet Office said gross domestic product in the second quarter contracted 6.8% from a year earlier and downwardly revised first quarter increase to 6.1% from the initially reported 6.7%.

On an annualized quarterly basis, GDP slumped 1.7% compared to downwardly revised 1.5% increase in the last quarter from the original estimate of 1.6%.

Consumer spending in the second-quarter tumbled 5.2% after adding 2.1% in the previous quarter.

The Nikkei 225 Stock Average increased 52.32 or 0.3% to 15,213.63 and the broader Topix index rose 4.44 to 1,262.13.

The yen closed at 102.44 against one U.S. dollar.

Stocks in Review

DeNA Co., Ltd fell 0.9% to 1,273 yen after the marketing service provider reported revenue in the first-quarter ending in June declined 31.3% to 35.82 billion yen from 52.16 billion yen a year ago period.

Net income in the quarter tumbled 59.2% to 4.03 billion yen compared to 9.88 billion yen and diluted earnings per share dropped to 29.01 yen from 71.89 yen a year earlier.

Sony Corporation gained 2.3% to 1,815 yen after the consumer electronics goods maker reported PlayStation 4 sales surpassed 10 million units.

Tokyo Electric Power Co Inc slid 0.8% to 387 yen after the electric power supplier agreed to spin off hydroelectric and renewable energy operation.

Trend Micro Inc slipped 0.9% to 3,565 yen after the security software provider after the financial service provider reported net sales revenue in the second-quarter ending in June jumped 4.8% to 55.32 billion yen from 52.81 billion yen a year ago period.

Net income in the quarter soared 12.4% to 10.76 billion yen compared to 9.57 billion yen and diluted earnings per share gained to 79.25 yen from 72.57 yen a year earlier.

Takara Holdings Inc gained 0.9% to 915 yen after the alcohol beverage maker said net sales in the first-quarter ending in June jumped 6.5% to 50.02 billion yen from 46.95 billion yen a year ago period.

Net in the quarter swung to profit 811 million yen compared to a loss of 86 million yen and earnings per share swung to 4.03 yen from a loss of 0.43 yen a year earlier.