Economic Growth in Japan Misses the Mark
Most financial stock markets in Asia reversed earlier losses to close a bit higher. However, economic growth in Japan missed the mark, showing no growth in the third quarter.
In Japan, the headline Nikkei 225, oscillated between gains and losses, to trade down 0.2 percent. The Topix, in Tokyo, was also a bit lower on the day. In Australia, the ASX 200 was up moderately in the afternoon as it tracked the financial sub-index higher. The material sub-index lost 1.47 percent and the gold sub-index lost 2.95 percent as resource plays were under heavy pressure.
Major minors each fell over two percent with Fortescue falling well over four percent on the day.
In Hong Kong, the Hang Seng Index was up 0.7 percent and the markets on mainland China were also higher, trading up over two percent. News has surfaced that the China Securities Regulatory Commission (CSRC) is preparing for the imminent launch of the Shenzhen to Hong Kong connect.
This will be very similar to the Shanghai to Hong Kong connect which will allow investors to by Chinese shares on the Hong Kong exchange. This will be positive for investors looking to invest in Chinese A-Listed shares as well as small-caps.
The financial markets in South Korea were closed for the public Liberation Day holiday.
Economic Data from Japan Shows no Economic Growth in Q3
Before the financial markets opened today, the world’s third largest economy, released its gross domestic product (GDP) for the third quarter (Q3). Their economy came in unchanged from the previous quarter, showing zero economic growth which means their economy has grown a tepid 0.2 percent year-to-date.
Economists had expected the economy, in Japan, to grow by 0.7 percent (annual) and a 0.2 percent expansion quarter on quarter.