TOKYO: Japanese stocks slipped after trading resumed after a holiday, with investors weighing slumping commodity prices with expectations for economic stimulus. Airlines led losses and paper makers gained.
The Topix index lost 0.2 per cent to 1,600.28 as of 9.04am in Tokyo, paring last week’s gain of 1.1 per cent. The Nikkei 225 Stock Average dropped 0.1 per cent to 19,857.34, after closing on Friday closing at the highest level since August 20. US stocks retreated yesterday amid a slump in commodity prices after capping the best week of the year on Friday. The world’s biggest economy reports on third-quarter growth today.
“Investors want to wait and see the US data coming this week and Japan’s new policy to raise potential growth rate to reach its gross domestic product target,” said Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co in Tokyo. “It is possible markets will be lack of a sense of direction.”
Prime Minister Shinzo Abe announced a plan in September to grow the Japan’s GDP to ¥600 trillion (RM20.9 trillion), without specifying a timeline. The government will outline new steps to stimulate the economy by the end of November, the Asahi newspaper reported, including plans to support pensioners, lower the cost to buy energy-efficient homes and increase the minimum wage.
Copper futures held losses near a more than six-year low after the metal slid last session with nickel, which touched its lowest price in more than a decade concern over a glut in supply and as the greenback extended gains.
