Tech stocks drag Nikkei as GDP readings clear the way for BOJ to raise rates
Japan’s Nikkei 225 led losses in Asia on Monday, falling over 2% and dragged by tech stocks.
According to Factset, semiconductor equipment manufacturer Advantest Corp was the largest loser on the index, down 6.32%.
This was followed by counterpart Screen Holdings, which slipped 5.75%.
Other names on the top losers list also include Softbank Group, which declined 5.19% as well as Kawasaki Heavy Industries, which fell 4.16%.
Japan averts technical recession as revised fourth-quarter data shows economy grew 0.4%
Japan posted a revised fourth-quarter GDP growth of 0.4% on an annualized basis, averting a technical recession.
This comes following earlier estimates had shown that Japan’s economy shrank 0.4% in the fourth quarter on an annualized basis, following a revised 3.3% slump in the third quarter, fulfilling the definition of a technical recession.
A positive GDP reading might clear the way for the Bank of Japan to raise rates sooner rather than later.
China swings back into inflation in February with 0.7% gain in CPI
China’s consumer price index climbed 0.7% year-on-year in February, marking the first time in four months that the country’s inflation rate rose.
The figure is a marked reversal from the 0.8% fall in January, which also was China’s largest rate of deflation since September 2009. It also beat the 0.3% rise that economists were expecting.
On a month-on-month basis, the CPI rose 1%, higher than expectations and compared to the rise seen in January.
Separately, the country’s producer price index slipped 2.7% year-on-year, more than the fall in January.
Consumer price index set to release this week
The February’s consumer price index coming out Tuesday is expected to show prices rose by 0.4% on a monthly basis, and 3.1% year over year, according to economists.
That’s compared to increases of 0.3% and 3.1%, respectively, in the prior reading.
Core CPI, which excludes volatile food and energy prices, is set to show a 0.3% increase on the month, and a 3.7% rise from the year-ago period, consensus estimates show.
Previously, it had risen 0.4% and 3.9% on the month and year, respectively.
Stock futures open little changed
U.S. stock futures were little changed Sunday night.
Dow Jones Industrial Average futures rose by 19 points, or 0.05%.
S&P 500 futures and Nasdaq 100 futures dipped 0.04% and 0.11%, respectively.
