JKB Financial Services Ltd.

As on : 16-May-2025

Market Commentary - Foreign Markets
16-May-2025 16:55

Japanese equities see flat moves

Japanese stock market saw flat moves amid tepid economic cues today. The trade fuelled rally gave up and Asian indices turned lower too. The benchmark Nikkei 225 index ended flat after hitting three-month high earlier this week. Some upside was seen in sectors like in the Real Estate, and Banking but overall, it was a tepid outing for Japanese stocks. Japan's economy contracted 0.2% quarter-on-quarter in Q1 2025, reversing a 0.6% gain in Q4. On an annualized basis, GDP fell 0.7%, marking the first yearly fall in a year. Net trade was the biggest drag, subtracting 0.8 percentage points, as exports fell 0.6% and imports jumped 2.9%. Private consumption, which makes up over half of the economy, was flat, while government spending also stagnated after three consecutive quarters of growth. Japan's industrial production rose 0.2% in March 2025. This marked a softening after a 2.3% gain in February. On a yearly basis, output increased 1.0%, the third consecutive annual rise.

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