FX.co ★ Japanese Shares Slip Amid Weak GDP Data

On Friday, the Nikkei 225 Index declined by 0.4%, settling at approximately 37,600, while the more comprehensive Topix Index decreased by 0.1% to reach 2,736. This marked the third consecutive session of declines in Japanese stocks, influenced by disappointing economic data and tepid cues from Wall Street. Investor confidence was dented following the news that Japan's GDP contracted by 0.2% quarter-on-quarter in the first quarter, representing the nation's first economic contraction in a year and falling short of the anticipated 0.1% decrease. This data echoed concerns highlighted earlier this week by the Bank of Japan, which cautioned about potential economic moderation in the face of the effects of U.S. trade policies. Additionally, Japanese markets mirrored the overnight downturn in U.S. technology shares, which experienced losses due to profit-taking activities. The decline was led by domestic technology firms, with Disco and Advantest each dropping by 1.6%, and Tokyo Electron falling by 2.1%. Major corporations Sony Group and Toyota Motor also saw declines, losing 2.3% and 1.7%, respectively.