Japan Falls on GDP, HK Gains

Ivaylo
11 Aug, 2006
New York City

The Japanese government stated before markets opened that GDP advanced 0.2% in the April through June period compared to the previous quarter. GDP had been expected to grow at about double that rate. South Korean index was also down on exporters losing ground, while HK moved up on consumer goods companies faired well.

[R]7:30AM Japanese stocks fall as GDP disappoints, wile HK advances.[/R]
Asian markets were mixed on Friday. The Nikkei 225 Average ended the day down 0.42% to 15,565.02. Most Japanese exporters lost, with Honda Motor edging down 1.53% and electronics conglomerate Hitachi Ltd. declining 0.57%. Some telecoms gained, with Japan''s largest phone company, Nippon Telegraph and Telephone Corp up 1.24%. Internet provider Softbank Corp advanced 1.49%. Financial stocks were lower, with Mitsubishi UFJ Financial Group shedding 1.86%.

In Hong Kong, the Hang Seng Index pulled out a 0.16% gain to close at 17,249.95. New World Development and Henderson Land led the gainers. Cathay Pacific Airways moved up 1.87% on speculation it may gain passengers who shy away from U.S. and European carriers. Earlier in the week, Cathay reported better-than-expected earnings on strong passenger numbers. Consumer goods exporter Li & Fung led advancing Hang Seng Index components, adding 4.72% after reporting stronger-than-expected earnings.

Elsewhere around the region, South Korea''s Kospi index was down 0.94% as major exporters Hyundai Motor and Samsung Electronics lost ground. Australia''s benchmark S&P/ASX 200 dropped 0.08%, as telecom giant Telstra fell more than 1% a day after reporting disappointing full-year results. China''s benchmark Shanghai Composite closed down 0.01% and Taiwan''s Weighted index lost 0.11%.