Japanese Shares Fall After 11-Day Rally on U.S. Economic Data

Japanese shares fell for the first time in 12 sessions after data showed the U.S. economy contracted in the first quarter.

Real-estate firms led declines, with Mitsubishi Estate Co. dropping 1.9 percent, the most in three weeks. Takata Corp., embroiled in an auto air-bag scandal, lost 2.6 percent as shares continued moving lower following a brief respite last week. Mitsui & Co. slumped 1.6 percent after SMBC Nikko Securities Inc. cut its rating on the stock. Toshiba Corp. jumped 2.4 percent after the Nikkei newspaper reported the company may move to restore its dividend.

The Topix index retreated 0.3 percent to 1,669.06 at the break in Tokyo after the measure rose 5.1 percent in May, its best month since February. The Nikkei 225 Stock Average lost 0.4 percent to 20,489.69. The yen traded at 124.18 per dollar after losing 4 percent in May, its biggest monthly decline since November. Data released Friday showed the world’s largest economy shrank for the first time in a year.

Source : Bloomberg

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Japanese Stocks Fall After 11-Day Rally on U.S. Economic Data

Japanese stocks fell for the first time in 12 sessions after data showed the U.S. economy contracted in the first quarter.

The Topix index retreated 0.6 percent to 1,662.99 as of 9:01 a.m. in Tokyo after the measure rose 5.1 percent in May, its best month since February. The Nikkei 225 Stock Average lost 0.5 percent to 20,462.61. The yen traded at 124.23 per dollar after losing 4 percent in May, its biggest monthly decline since November. Data released Friday showed the world largest economy shrank for the first time in a year.

U.S. gross domestic product shrank at a 0.7 percent annualized rate in the first quarter. Bad weather, a swelling trade deficit caused by a strong dollar and plunging investment in oil exploration following a drop in fuel prices contributed to last quarter’s slump. The Institute for Supply Management-Chicago Inc. business barometer fell to 46.2 in May from 52.3 the prior month.

Data Monday showed Japan capital spending unexpectedly rose 7.3 percent in the first quarter from a year earlier, while company profits added just 0.4 percent.

Source : Bloomberg

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