Japanese stocks were steady on Monday as a downward revision in third quarter GDP figures balanced hopes for exporters due to a weaker yen and optimism over the US economy.
The Nikkei benchmark was flat at 17,916.83 at 0141 GMT, after breaking through the 18,000 barrier to hit a fresh 7-1/2 year high of 18,030.83.
Revised data showed Japan’s third quarter economic contraction was deeper than first expected, surprising investors and underlining the fragility of its economy, which has struggled to rebound from a sales tax hike in April.
An annualised drop of 1.9 per cent — greater than the 1.6 per cent fall initially reported, was driven by a downward revision of capital expenditure. Confidence at Japanese manufacturers also slid in December, a Reuters poll showed.
“The GDP figures put the brakes on the positive catalysts from abroad,’’ said Masayuki Doshida, senior market analyst at Rakuten Securities.
Data released on Friday showed that US employers added 321,000 jobs in November, a far brisker pace than expected, helping Wall Street stocks post a seventh consecutive week of gains.
The figures encouraged investors in Japanese exporters as the strengthening US market will help them weather slower growth in China and a moribund euro zone economy.
A weaker yen also helped boost exporters’ prospects. The yen plummeted to a new seven-year low of 121.84 against the dollar on Monday morning.
Toyota Motor Corp jumped 1.3 per cent, leaving the automaker on course for a seventh day of gains. Nissan Motor Co added 0.3 per cent, while electronics maker Nikon Corp also ticked up 0.3 per cent.
The broader Topix ticked down 0.1 per cent to 1,444.90, while the JPX-Nikkei Index 400 also shed 0.1 per cent to 13,122.61.