Japanese stocks fell, with the Topix index dropping from the highest in more than four months, as the yen maintained gains and U.S. stocks retreated.
The Topix lost 0.7 percent to 1,230.82 as of 9:01 a.m. in Tokyo after closing yesterday at the highest since Jan. 29. All but two of the gauge��s 33 industry groups declined. The Nikkei 225 Stock Average slid 0.8 percent to 14,951.92. The yen gained 0.1 percent to 102.01 per dollar after strengthening 0.5 percent the past two days. Japan��s currency yesterday touched a four-month high against the euro.
Analysts at JPMorgan & Chase Co. and Pierpont Securities LLC yesterday said the U.S. economy probably contracted more than estimated in the first quarter on a drop in health-care spending. The pullback means gross domestic product shrank at a 1.6 percent pace, JPMorgan said, steeper than the revised 1 percent contraction reported May 29.
While the Topix climbed 7.7 percent from its May 21 low through yesterday, it��s still the worst performer this year among 24 developed markets tracked by Bloomberg. The measure capped a world-beating rally last year as the Bank of Japan pressed ahead with its record monetary easing. The central bank is scheduled to start a two-day policy meeting today.
Source : Bloomberg