Asian Markets End In Negative Territory

(RTTNews) - The markets in Asia ended the trading session on Friday, the last trading day of the week and the month, in negative territory, taking cues from Wall Street where the major averages ended the previous session in the red, on concerns about the economy. Caution ahead of the key economic data in the US related to advance second quarter GDP kept traders on the sidelines awaiting more cues on global economic recovery. Profit taking following recent gains also impacted market sentiment.

In Japan, the benchmark Nikkei 225 Index lost 158.72 points, or 1.64%, to 9,537, while the broader Topix index of all First Section issues was down 11.77 points, or 1.37% percent, to 849.

On the economic front, a preliminary report released by the Ministry of Economy, Trade and Industry revealed that an index measuring industrial output in the country unexpectedly declined 1.5% on a seasonally adjusted basis in June, compared to the previous month, posting a score of 94.7. Analysts were expecting a 0.2% increase for the month, following 0.1% monthly gain in the previous month. The report further noted that, on an annual basis, industrial production climbed 17.0%, again missing forecasts for an 18.9% increase after surging 20.4% in the previous month.

A report released by the Ministry of Internal Affairs and Communications revealed that core consumer prices in the country declined 1.0% year-on-year in June, following 1.2% decline in the previous month. Analysts expected the consumer prices to decline 1.1% for the month. The report further noted that overall inflation was down 0.7% on year after easing 0.9% in May. It was flat on month after adding 0.1% in May.

In a separate report, the Ministry of Internal Affairs and Communications revealed that the unemployment rate rose to a seasonally adjusted 5.3% in June, with 3.44 million people looking for jobs. Analysts expected the unemployment rate to be flat at 5.2% as in May. The report further noted that the total labor participation rate in the country was 59.9% with 62.80 million people having active employment.

A report released by the Ministry of Land, Infrastructure, Transport and Tourism revealed that housing starts in the country increased 0.6% year-on-year in June, after having declined 4.6% in May. Economists expected the annual growth rate in housing starts for June to be 1.8%. The report noted that annualized housing starts in June totaled 750,000, compared to 737,000 in May. The expected level was 759,000.

Real estate stocks led the decline on stronger yen. Mitsubishi Estate plunged 4.09%, Mitsui Fudosan lost 3.90%, Sumitomo Realty and Development shed 2.32%, Tokyu Land Corp. fell 3.09% and Heiwa Real Estate was down 3.27%.

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