Japan growth slows in second quarter, adds to sales tax uncertainty

TOKYO | Mon Aug 12, 2013 5:30am BST
(Reuters) - Japan's economy grew at a slower-than-expected rate in the second quarter, offering ammunition to those seeking to delay a scheduled sales tax increase even as government debt has risen past 1,000 trillion yen (6.71 trillion pounds).

Capital expenditure unexpectedly fell for a sixth straight quarter, a sign that companies are yet to boost spending despite the feel-good mood generated by Prime Minister Shinzo Abe's reflationary policies over the first half of 2013.

Hong Kong, China shares rise on solid econ data; coal, cement strong

Mon Aug 12, 2013 5:56am BST

HONG KONG, Aug 12 (Reuters) - Hong Kong and China shares started the week strongly as solid economic data released late Friday on the world's second-largest economy buoyed cyclical sectors from coal to cement and heavy machinery.

Monday's gains came in the highest Hong Kong midday turnover in about a month, while Shanghai volumes also improved, suggesting investors could be returning, mostly to cut some bearish bets.

At midday, the Hang Seng Index was up 1.7 percent at 22,170.7 points, its highest in a week. The China Enterprises Index of the top Chinese listings in Hong Kong climbed 2.4 percent.

The CSI300 of the leading Shanghai and Shenzhen A-share listings rose 1.7 percent, while the Shanghai Composite Index gained 1.3 percent. Both were at their highest intra-day levels in about a month.

Nikkei drops to 7-week low on soft Q2 GDP; thin trade hits brokerage stocks

Mon Aug 12, 2013 7:23am BST
TOKYO, Aug 12 (Reuters) - The Nikkei share average dropped
to a 7-week low on Monday after Japan's economy grew more slowly
than expected in the last quarter, while thin trade dragged down
brokerage stocks on worries about lower commissions.

The benchmark Nikkei fell 0.7 percent to 13,519.43
and the broader Topix dropped 0.6 percent to 1,134.62.
Only 1.78 billion shares changed hands, the lowest level since
December 11.

Japan's economy grew an annualised 2.6 percent in
April-June, well below the market consensus of 3.6 percent,
which added to concerns about a delay in a planned sales tax
hike to tackle massive government debt.

CHF Retail Sales y/y 2.3% 1.9% 1.5%

FTSE100 ends day slightly lower as airline stocks stall