Nikkei dips as soft data, post-election lull cap moves By Satoshi Sugiyama

TOKYO: Japan’s Nikkei share average drifted lower on Monday, with financials leading losses, as weaker-than-expected economic data and a post-election lull capped moves.

The Nikkei 225 Index was down 0.2% at 56,824.37, as of 0146 GMT.

The broader Topix slid 0.7% to 3,792.63.

Preliminary October-December gross domestic product (GDP) figures showed that the Japanese economy missed economists’ median forecast on softer capital spending, although it did reverse the previous quarter’s contraction.

“I figured the GDP figures would be treated as past figures, but seeing the Nikkei average struggling to gain, there may be some slight impact,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

The rally in Japanese equities following Prime Minister Sanae Takaichi’s snap-election victory earlier this month may also have run its course for now, Ichikawa added.

The banking sector was down 3.22%, with Resona Holdings and Mizuho Financial Group dropping 7% and nearly 5%, respectively.

The largest loser by percentage in the Nikkei was medical equipment maker Olympus, down nearly 13%, following disappointing earnings.

Printing and electronics firm Toppan Holdings fell 5.5%.

Bucking the overall sombre mood, shares of Sumitomo Pharma surged 13.9% to lead the Nikkei’s gainers by percentage after the drugmaker said Japan’s health ministry would review its iPS cell-derived therapy for advanced Parkinson’s disease this week.

Credit card company Credit Saison jumped 9%, and furniture maker Nitori Holdings gained 8.2%.