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.

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