Japan: Nikkei extends losses on weak GDP data

The Japan share market finished lower for third straight session on Monday, 17 February 2020, as risk-off selloff continued on concerns about the future health of the world's third-largest economy after weaker-than-expected gross domestic product (GDP) reading for the December quarter. Meanwhile lingering worries about the economic impact of the coronavirus epidemic also weighed down market sentiment. All but two of the 33 sector sub-indexes on the Tokyo Stock Exchange were lower, with air transport, sea transport, food and metal products issues being losers. At closing bell, the 225-issue Nikkei Stock Average declined 164.35 points, or 0.69%, to 23,523.24, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 15.10 points, or 0.89%, at 1,687.77.

On Sunday, China reported 1,933 new confirmed cases of the coronavirus, down from 2,009 the previous day, and 100 new deaths, down one from 142 the previous day. The economic impact of the epidemic is still unknown. Some economists have estimated that China's annual growth could slow to between 4% and 5%, down from the 6% annual growth estimated by the government.

Kirin Holdings Co tumbled 7.3% after the brewer posted a net profit of 59.6 billion yen ($543 million) for the year-ended December, down 63.7% from a year earlier. The firm also opposed a UK-based activist's proposal to buy treasury shares worth 600 billion yen.

Nissan Motor Co slid 2% to its lowest in nearly 11 years, after losing 9.6% on Friday, as its French partner Renault posted its first annual loss in a decade.

ECONOMIC NEWS: Japan GDP Down 6.3% On Year In Q4- Japan's gross domestic product was down an annualized 6.3% in the fourth quarter of 2019, the Cabinet Office said in Monday's preliminary report, following the 0.5% increase in the three months prior. On a seasonally adjusted quarterly basis, GDP sank 1.6%, following the 0.1% gain in the third quarter. Nominal GDP was down 1.2% on quarter, after gaining 0.6% in the previous three months. The GDP deflator was up 1.3% on year in Q4, the Cabinet Office said, up from 0.6% in the three months prior.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, appreciated against a basket of currencies after the Cabinet Office reported a much deeper economic contraction than expected. The Japanese yen traded at 109.85 per dollar.

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