Japan's GDP Decline Was Less than Previously Expected, Current Account Surplus Rebounded

Akira Ito
10 Jun, 2024
Tokyo

Benchmark indexes in Tokyo advanced in Monday's trading, and investors reviewed two key economic reports. 

The Nikkei 225 and the Topix gained as much as 1% after the GDP growth decline was less than previously expected and the current account surplus rose more than expected. 

Japan's economy shrank 1.8% in the first quarter, less than the previously estimated decline of 2.0% by the government. 

The revision was largely because of a smaller decline in private investment of 0.4%, less than 0.5% in the previous quarter. 

On a quarterly basis, Japan's GDP decline of 0.5% was unrevised, according to the data released by the Cabinet Office. 

Japan's GDP contracted as consumption and exports declined from the previous quarter, and the weaker yen contributed to a higher import bill for energy and other raw materials. 

In other economic news, Japan's current account surplus rose more than expected to 2.05 trillion yen, an increase of 8.2% from a year ago, according to the Ministry of Finance. 

However, the current account surplus decreased from 3.399 trillion yen in March. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 0.9% to 39,038.16, and the Topix index advanced 1% to 2,782.49. 

Tech stocks led the gainers in Tokyo following the late rebound in Friday's trading in New York. 

Tokyo Electron, Socionext, Advantest, Screen Holdings, and SoftBank gained between 0.3% and 4%. 

Banks were among the leading gainers in Monday's trading. 

Mitsubishi UFJ, Sumitomo Mitsubishi, and Mizuho Financial Group added between 0.5% and 0.7%. 

Hitachi, Sumitomo Pharma, Sumitomo Electric, and Dai-Ichi Life gained more than 3%. 

Kao Corp., the maker of chemicals and cosmetics, declined 4.5% to ¥6,740.0.