Flat start to week for Nikkei

<p>The Nikkei has had a flat start to the week.</p>

The Nikkei has recovered from some of the losses sustained during last week to post a slight increase in its value today (August 12th).

It rose by 0.1 per cent during the course of the week's opening session, following on from the 0.1 per cent increase that was recorded on Friday, reports Reuters.

But trading was thin during Monday's session and data regarding the Japanese economy has been described by Kenichi Hirano, a strategist at Tachibana Securities, as a "blow" for the stock market.

Japan's economy grew an annualised 2.6 per cent, which is below the expectations of analysts ahead of the release of the figures.

"Investors were hoping for a three per cent growth at least, even if it's below consensus," said Mr Hirano, adding: "Now the question is when and what level the market will stop falling."

Last week, the Nikkei lost around six per cent of its value, which was the biggest weekly drop for the index since June. Last Wednesday was a particularly bad day, with the index dropping by four per cent.

Learn about the Asian markets and CFD trading at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.