Japanese Q1 Shares Crashed Amidst U.S. Inflation Data

On Tuesday, June 8, the Japanese government released its Q1 data as its economy crashed 3.9% in the first quarter.

On Wednesday, the country’s equities declined as investors are taking profits in shippers and semiconductor firms. It is followed by the focus on the U.S. inflation data. It can impact the Federal Reserve’s decision on its stimulus program.

Recently, financial firms and insurers refused to withdraw in the long-term U.S. Treasury yields since it lessens the outlook for returns on their portfolios.

An analyst said that Japanese investors want to see the U.S. Consumer Price Index (CPI) tomorrow. However, he added that it might be a relief to markets if it is not quick as anticipated. It can result in a rally.

Last Monday, Eisai Co could raise its daily limit for a second session as the FDA approved its Alzheimer’s drug. Meanwhile, at the midday break, the shares of Nikkei 225 tumbled 0.3% to 28,868.29. Consequently, the broader Topix also flopped 0.2% to 1,958.30.

The sea transport sub-sector of Topix was its largest decliner as it sank 2.8%. Also, Lasertec, a semiconductor firm, crashed 6.0%, which fell on its third day after jumping to a record high.

On the other hand, real estate is the best performer of the sub-sector, soaring 3.4%. Subsequently, air transport experienced a sharp spike of 3.0%, and land transport added 1.4%.

All of it is due to the country’s fast COVID-19 vaccination program. This supported the outlook for the people’s comeback to offices and the resumption of land and air travel.

Asia-Pacific Stocks

On Tuesday, Asia Pacific stocks were mostly down as investors digested the release of Japan’s revised Q1 GDP product figures.

South Korea’s KOSPI declined 0.13% at 3,247.83. The nation’s GDP rose 1.7% quarter-on-quarter in this year’s Q1. It exceeded both analysts’ forecast and the previous quarter’s growth of 1.2%.

Moreover, Hong Kong’s Hang Seng index fell 0.1%, while Australia’s S&P/ASX 200 climbed 0.15% at 7,292.60.

Elsewhere in Mainland China, the Shanghai Composite crashed 0.54% to 3,580.11. The same with the Shenzhen Component, which also shrank 0.98% to 14,716.98.

On Tuesday, we got the nation’s consumer price index (CPI) for May. It contracts 0.2% month-on-month and it grows 1.3% year-on-year. However, its producer price index (PPI) exceeded expectations at 9% year on year.

Lastly, the MSCI’s widest index of Asia-Pacific shares was down by 0.23%.