TOKYO: Tokyo shares lost 0.76 percent Tuesday morning after opening higher following better-than-expected revised Japanese GDP figures and as investors awaited Chinese trade data.
The Nikkei-225 index at the Tokyo Stock Exchange lost 135.11 points to 17,725.36 by the lunch break.
The broader Topix index of all first section shares was also down 0.44 percent, or 6.32 points, to 1,439.33.
The losses came after Tokyo shares opened higher following fresh Japanese data that showed the world’s third largest economy did not shrink as much as initially thought in the second quarter.
The economy contracted 0.3 percent during the April-June period, less than its original estimate of a 0.4 percent fall.
But the still-disappointing figures fuelled speculation that the Bank of Japan will be forced to unleash more stimulus later this year to counter the downturn.
And many investors were keeping to the sidelines in morning trade, as they cautiously monitor China’s economy following months of market volatility amid fears of a slowdown in Asia’s biggest economy.
“While there are opportunities out there, there’s no rush to pick the bottom at this stage given prevailing uncertainties over the slowdown in the Chinese economy and the timing of the US interest-rate increase,” Tim Schroeders, a portfolio manager at Pengana Capital, told Bloomberg News.
“Investors probably want to sit tight and watch developments closely,” he added.
After Tokyo morning trade finished, fresh data showed China’s exports fell 6.1 percent from a year ago.
Adding to the China concerns, Beijing on Monday lowered the country’s GDP growth figure for last year by 10 basis points to 7.3 percent.
