Shares in Asia-Pacific were mostly lower in Tuesday afternoon trade, as investors reacted to the release of Japan’s revised first-quarter gross domestic product figures.
The Nikkei 225 in Japan shed 0.19%.
Revised government data released Tuesday showed Japan’s economy shrank 3.9% in the first quarter, an improvement from the initial estimate of a 5.1% contraction. The revised gross domestic product compared against economists’ median forecast in a Reuters poll for a 4.8% contraction.
The Gross Domestic Product (GDP) of Japan went down by 3.9% on an annual basis in the first quarter of 2021, according to a final report released by the country’s Cabinet Office on Tuesday.
The annualized value of goods and services produced by the nation in the three-month period marked an improvement compared to a drop seen in the preliminary report, which stood at 5.1%. When compared to the previous quarter, the GDP contracted by 1%, surprising expectations.
Despite decreasing less than projected, Japan’s GDP plummeted in contrast with the figure seen in the final quarter of 2020 which saw the country marking an 11.6% improvement year-on-year.
“We expect the economy will experience another contraction in Q2 given the extended restrictions, which will weigh heavily especially on the services sector,” Makoto Tsuchiya, assistant economist at Oxford Economics, wrote in a Tuesday note. “However, we remain optimistic that the pace of recovery will pick up in H2 as domestic demand recovers, supported by increased vaccinations, while foreign demand should continue to support the manufacturing sector.”
Nikkei 225 Long (Buy)
ENTER AT: 29380.76