Nikkei 225 closes high as Japanese economy continues to shrink

<p>The Nikkei 225 has rallied as Japan’s Q4 data fails to inspire confidence.</p>

The Nikkei 225 closed on a stronger footing this morning (February 14th) despite the disappointing news Japan's economy shrank in the final quarter of 2012.

This period of contraction was the third in a row for the world's number three economy and marks the beginning of Shinzo Abe's premiership.

Japan's economy shrank by 0.1 per cent compared to the previous quarter when most analysts had forecast tentative growth of 0.1 per cent. This is the equivalent to an annualised dip of 0.4 per cent in gross domestic product.

Japan's key export market has been damaged by the effect the global economic downturn has had on its export market, while an ongoing territorial dispute with key trading partner China has also had an impact on business.

At close of play in Tokyo this morning, the Nikkei 225 rallied by 0.5 per cent to an index value of 11307.2 points.

Find out about the Asian markets and CFD trading strategies at City Index.


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.