TOKYO: Japanese stocks drifted lower Friday after weak U.S. earnings underlined the uncertain economic outlook and dented Wall Street. Most Asian markets were closed for Labour Day.
Japan’s Nikkei 225 was down 0.3 percent at 19,471.50 while Australia’s S&P/ASX 200 added 0.5 percent to 5,819.60. New Zealand’s benchmark shed 0.3 percent to 6,182.51. Other markets in the region were closed for the holiday.
Disappointing earnings from some U.S. companies added to pessimism about the economic outlook after weak first quarter growth in the world’s biggest economy. While many investors remain optimistic that growth will resume later in the year that belief isn’t yet being backed up stronger economic data or good corporate earnings reports.
“Focus remained on the U.S. recovery with investors concerned about growth stalling and employment costs rising,” said IG strategist Stan Shamu in a market commentary. “Personal spending and personal income data also fell short, while earnings were more on the disappointing side. This saw investors largely ignore the better-than-expected unemployment claims reading.”
Japan’s core inflation rate edged up in March and unemployment eased slightly, according to data released Friday, offering glimmers of promise for the world’s No. 3 economy as it struggles to get growth back on track after years of stagnation. Though a decline in factory output and other key measures were less encouraging, the central bank kept its ultra-loose monetary policy unchanged in a policy meeting Thursday despite expectations for more stimulus.
