Global Markets: Japanese stocks fall on soft data and post-election moves

Japanese shares fell on Monday after weaker-than-expected economic data and a post-election lull limited price movements.The Nikkei 225 Index fell 0.2% to 56,806.41, while the broader Topix fell 0.8% to 3,787.38. Preliminary gross domestic product (GDP) data from October to December showed Japan’s economy missed economists’ average forecast due to softer capital spending, although it reversed the previous quarter’s contraction.

“I thought the GDP numbers would be treated as past figures, but with the Nikkei average struggling to rise, there could be a small impact,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

The rally in Japanese stocks following Prime Minister Sanae Takaichi’s snap election victory earlier this month may also have reached an end for now, Ichikawa added.

Rubber producers and banks were the biggest decliners among the Topix 33 industry groups. Bridgestone fell 6.5% after the tire maker’s full-year net profit forecast missed analysts’ expectations.

The biggest percentage loser on the Nikkei was medical device maker Olympus, which fell almost 13% after disappointing earnings results. Resona Holdings, a major domestic lender, fell 8%.

Despite the general downbeat mood, shares of Sumitomo Pharma hit their daily limit, rising 20.2% to lead the Nikkei in percentage terms, after the drugmaker said Japan’s Health Ministry would this week review its iPS cell therapy for late-stage Parkinson’s disease. Furniture maker Nitori Holdings extended its rally to nine sessions, the longest on record, advancing about 28% over the period. It ended Monday’s session up 9.4%. Credit card company Credit Saison rose 7.4%.

There were 84 advancers on the Nikkei index, compared to 140 decliners.