Tokyo stocks close down as GDP shows record fall

Tokyo shares closed lower Monday on profit-taking after official data showed the Japanese economy experienced a record quarterly contraction in the three months to June.

The benchmark Nikkei 225 index fell 0.83 per cent, or 192.61 points, to 23,096.75, snapping a four-day winning streak.The broader Topix index eased 0.84 per cent, or 13.56 points, to 1,609.82.

"Investors cashed in on recent gains," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

"GDP figures were largely within expectations" but reconfirmed the sizable impact of the coronavirus pandemic on the Japanese economy, Horiuchi told AFP.

The April-June GDP figures, which were announced 10 minutes before the opening bell, showed that the economy shrank a record 7.8 percent quarter-on-quarter, the worst contraction in the nation's modern history. 

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Investors were also discouraged by worsening US-China tensions after the two countries postponed weekend trade negotiations, brokers said.

"The postponement accelerated today's profit-taking," Horiuchi added.

The dollar stood at 106.55 yen in Asian afternoon trade, down from 106.62 yen seen in New York on Friday.

Among major shares, SoftBank Group dropped 1.40 percent to 6,237 yen, while Sony gave up earlier gains, slipping 0.56 percent to 8,826 yen.

Toyota lost 0.34 percent to 7,156 yen but Nissan gained 1.15 percent to 421.3 yen.

Agence France-Presse