Japanese shares trade mostly lower on weak GDP data, surge in JGB yields
EWJ•GDP undershoots forecasts, adding to demand concerns
Japan's economy expanded at an annualised 1.1% in the three months through June, undershooting the 2.0% median forecast, according to data released on Monday.
The weaker growth, driven by flat private consumption and a 1.2% drop in capital spending, added to concerns about the resilience of domestic demand.
Japanese shares end mixed as growth data disappoints
Most Japanese shares fell on Monday as investors weighed weaker-than-expected domestic growth data and the impact of the Middle East crisis on inflation and bond yields.
The broad Topix .TOPX share index slipped 0.31% to 4,184.11. The benchmark Nikkei 225 .N225 reversed earlier losses to close 0.74% higher at 69,220.25, with most of its constituents down on the day.
AI suppliers lift the Nikkei despite negative breadth
Breadth was negative, with 77 advancers on the Nikkei 225 against 146 decliners and two unchanged. Even so, sharp gains by major suppliers to the AI sector helped the Nikkei close higher.
The largest percentage gainers in the index were chipmaker Kioxia Holdings 285A.T, up 15.07%, followed by Mitsui Kinzoku 5706.T, 7.54% higher, and Fujikura 5803.T, which gained 7.29%.
The largest losers were Trend Micro 4704.T, down 8.53%, followed by NEC 6701.T, 7.39% lower, and Dentsu Group 4324.T, which lost 7.09%.
Rising yields and geopolitical tension weigh on sentiment
Geopolitical tensions in the Middle East, including disruptions to tanker traffic through the Strait of Hormuz, kept oil prices elevated, pushing yields on Japanese government bonds (JGBs) to multi-decade highs.
