SHAFAQNA (Shia International News Association)- Japan’s stocks have fallen nearly three percentage points, as official data have indicated that the country’s economy contracted in the third quarter of 2014.
On Monday, Japan’s Nikkei 225 index at the Tokyo Stock Exchange fell 453.18 points to 17,037.65, while the Topix index of all first-section shares shed 2.09 percent, or 29.22 points, to 1,371.19.
Official data show that Japan’s gross domestic product (GDP) shrank 0.4 percent in the third quarter compared with the second, when the economy contracted by 1.9 percent.
“GDP for July-September wasn’t good, unfortunately,” Japanese Prime Minister Shinzo Abe told a political gathering in the capital, Tokyo, shortly after his return from the G20 summit in the Australian port city of Brisbane.
The Japanese government stated that the country’s economy slipped at a 1.6-percent annual pace in the July-September quarter, confounding economists’ forecasts for a 2.1-percent rebound.
Housing investment fell 24 percent from the same quarter a year ago, and corporate capital investment plummeted 0.9 percent, while consumer spending elevated just 0.4 percent.
Nicolas Cheron, an analyst at London-based Forex Capital Markets (FXCM), said, “It’s a bit of shock for the market, because people believed that the Bank of Japan had everything under control. But overall, the initial negative reaction shouldn’t last too long. Investors still expect central bank action worldwide to support the global economy.”
In October, the Bank of Japan expanded its already enormous monetary easing program to counter the slump. However, the new data will lead to talk of further measures by the central bank.