Nikkei falls 0.29% as growth concerns persist

Japan share market declined on Thursday, 24 July 2014, registering second consecutive fall, after the government cut its fiscal year growth forecast and official data indicated Japan's trade deficit ballooned to a record in the first half of the year. The benchmark Nikkei 225 index lost 0.29%, or44.14 points, to close at 15,284.42, while the Topix index of all first-section issues declined 0.20%, or 2.53 points, to 1,269.86.

Data from the finance ministry showed the Japan's logged a record 7.60 trillion yen ($74.7 billion) deficit for the first six months of the year, expanding 58% from a year earlier. The half-year figures were released with June data that showed the monthly deficit more than quadrupled to 822.2 billion yen from 180.5 billion yen a year earlier. Last month, exports fell 2% year on year to 5.94 trillion yen while imports rose 8.4% to 6.76 trillion yen.

The figures come days after the government cut its fiscal year growth forecasts, blaming weak exports and a jump in imports as well as the negative impact of an April sales tax hike on consumer spending and business confidence. The Cabinet Office revised down Japan economic growth forecast to 1.2% in the year to March on Wednesday, compared with a previous estimate of 1.4%. The announcement comes a week after the Bank of Japan also lowered its outlook to 1% from an earlier 1.1%.

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