Most Asian stocks declined today (November 17th) after new data showed Japan's economy unexpectedly entered recession.
Official figures showed the Japanese economy shrank 0.4 per cent quarter-on-quarter between July and September this year, while analysts bet on a 0.5 per cent growth. It followed a revised 1.9 per cent contraction in the second quarter of 2014.
Prime Minister Shinzo Abe is now expected to delay a sales tax rise due next October: "In light of the sharp fall in today's preliminary estimate, it now looks likely that PM Abe will call off the hike and announce snap elections," Marcel Thieliant from Capital Economics said in a report seen by AFP.
Tokyo stocks fell 2.96 per cent to 16,973.80. Seoul was flat at 1,943.63, while Shanghai closed 0.19 per cent lower to 2,474.01 and Hong Kong slipped 1.21 per cent to 23,797.08.
Learn about the Asian markets and CFD trading at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.