TOKYO: Tokyo stocks declined 0.66 per cent as unsatisfactory US growth and Chinese data figures dented optimism about the state of the worldwide economy.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange fell 116.35 points to finish at 17,558.04, while the broader Topix of all first-section shares slipped 0.45 per cent, or 6.32 points, to 1,408.75.
Monday’s decline followed a tumble on Wall Street as data showed the US economy expanded at an annual rate of 2.6 per cent in the fourth quarter, well below the 5.0 per cent in the previous three months.
The Dow sank 1.45 per cent, the S&P 500 lost 1.30 per cent and the Nasdaq fell 1.03 per cent.
Asian markets were also reacting to news that China’s official purchasing managers index (PMI) of manufacturing activity unexpectedly retreated last month for the first time in more than two years.
Data published on Sunday showed its PMI at 49.8 last month, against 50.1 in December. Anything below 50 points to contraction and anything above indicates growth.
“Market sentiment is turning risk-averse after both the US growth figures and the Chinese manufacturing data fell short of estimates,” said Atsushi Hirano, head of forex sales in Japan at Royal Bank of Scotland.
Hitoshi Asaoka, a senior strategist at Mizuho Trust & Banking, said lukewarm Japanese corporate earnings were also having an impact.
“We’re right in the middle of earnings season, and while the Japanese results on Friday weren’t too bad, the weakness in the US is weighing on shares today,” he said.
