Nikkei Falls as Japanese Economy Contracts 0.3% in Quarter

Japan’s Nikkei index saw all the gains made this year wiped out after it fell below 17,450.77 points on Tuesday.

The benchmark index finished the day down 2.43% at 17,427.08 points.
Analysts said investors were concerned about China’s economy following latest trade numbers released on Tuesday.

Investors also reacted to Japan’s revised growth numbers released earlier which analysts said had not eased concerns about the state of the nation’s economy.

Japan’s economy contracted 0.3% during the quarter, compared with original calculations of a 0.4% contraction.

The revision beat market expectations, which were for a contraction of 0.5%, but did little to calm investors.

The world’s third largest economy also revealed a revised fall in private consumption on Tuesday to 0.7% from a previous estimate of 0.8%.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza