Weak growth of the Japanese economy did not stopped the rise of Nikkei

NikkeiThe leading capital markets in Asia ended the first session of the week in green territory, continuing the trend of Wall Street since the end of last week. The most significant growth in the continent has made Nikkei 225 in Tokyo, which added 2.29% to 15 650.21 points. The weakening of the yen offset pessimistic data that showed lower than expected economic growth in the third quarter. The Japanese currency traded at around 103 JPY per USD approaching reached last week, 6-month low of 103.37. A weaker yen boost the profits of export-oriented companies. The shares of SoftBank and Fanuc rose 2%, while KDDI and Fast Retailing added over 3%. The Japanese government lowered the initial estimate for the growth of the country during the third quarter. The ruling stated that the capital expenditure was lower than originally calculated. The GDP of Japan grew by 1.1% on an annual basis for the period from July to September compared with the second quarter, revising down an initial assessment of growth of 1.9% yoy, published three weeks ago. Interviewed by Nikkei and Wall Street Journal Economists expect the revised forecast to be up 1.5%. This is a serious decline from the first half of the year when Japan’s economy expanded by about 4%, surpassing even the growth of USA. The US economy grew by more than the Japanese in the third quarter objectives 3.6%.
In India, the Sensex index rose 1.53% up to 21 317.63 points. Earlier in the session the benchmark reached a new historic high of 21,483 points as investors welcomed the victory of the party “Bharatiya Janata” in state elections over the weekend.
While the local currency – the rupee, hit 4-month high of 60.83 per USD. Thai SET erased gains from early trading, closing with a minimal decrease of 0.1%. The Prime Minister Shinawatra Ingluk dissolved parliament and called for early elections. In China, the Shanghai Composite rose to 2 238.20 points, adding 0.05% minimum. Statistics from the country showed that annual inflation slowed to 3% in November from 3.2% a month earlier. The trade surplus rose to 33.8 billion USD.
The Australian benchmark S&P/ASX 200 slid 0.80% to 3-month low of 5 144,42 points. The decline was mainly due to the decrease in the capitalization of the largest insurers in the country – QBE Insurancewarned. The shares of the company fell 22% after the publication of unexpected net loss in the previous quarter.

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