TOKYO: Tokyo stocks fell Tuesday morning, with investor sentiment stifled by declines in U.S. equities overnight amid plunging oil prices, despite an upward revision to Japan’s July-September gross domestic product data.
The 225-issue Nikkei Stock Average shed 203.17 points, or 1.03 percent, from Monday to end the morning at 19,494.98. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 16.23 points, or 1.02 percent, to 1,568.98.
Decliners were led by mining, oil and coal products and iron and steel issues.
Stocks marked narrow gains in early trading after
Japan’s revised July-September gross domestic product data came in stronger than expected before the opening bell.
Japan’s economy grew an annualized 1.0 percent in the July-September period in inflation-adjusted terms, upgraded from a 0.8 percent contraction. Market expectations centered on around 0.2 percent growth, said Akira Tanoue of Nomura Securities Co.’s investment research and investor services department.
But stocks soon lost ground, pulled down by energy-related issues, following similar declines in
Crude oil futures hit at one point a nearly seven-year low of $37.50 per barrel overnight in
New York, following the Organization of Petroleum Exporting Countries’ decision Friday not to curb production.
“Despite the GDP data exceeding expectations, its positive impact on stocks has been drowned out amid uncertainty over economic conditions in overseas markets,” Tanoue said.
Stocks are vulnerable to falling further in the afternoon if Chinese trade data expected during the day come in weak, he added.
On the First Section, declining issues outnumbered advancing ones 1,484 to 324, while 115 ended the morning unchanged.
Oil explorer Inpex tumbled 61 yen, or 5.0 percent, to 1,165 yen and Japan Petroleum Exploration fell 110 yen, or 3.2 percent, to 3,285 yen.
