Nikkei rises for 3rd day despite poor Japan data

<p>Tokyo stocks rose today for a third day despite reports of a contraction in the Japanese economy.</p>

Japan's Nikkei extended its gains for the third day in a row as investors reacted calmly to new data showing that the Japanese economy contracted in the last quarter.

The economy shrank by 1.7 per cent between April and June, mainly because of a sales tax rise that hampered growth.

When annualised, the contraction reaches 6.8 percent, the biggest drop since the devastating March 2011 earthquake.

However, these figures were in line with forecast, which helped the Nikkei recovering from an initial fall, along with hopes that Japan's Government Pension Investment Fund (GPIF) was planning to invest more in domestic stocks.

The 225-issue Nikkei Stock Average was up 0.35 per cent to 15,213.63, while the broader Topix index climbed 0.35 per cent to 1,262.13.

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