Nikkei225 Slides As Japan Manufacturing Data Falls –Outlook Cautious
Feb, 28th 14:26
Asian shares extended losses on Wednesday as weak Chinese and Japanese manufacturing data revived worries about global growth amid anxiety over faster rate rises in the United States.
Japan’s Nikkei tumbled 1 percent on a slightly firmer yen.
Japan’s factory output fell by the most in nearly seven years in January, badly missing forecasts. Retail sales also dropped more than expected. Even so, the economy’s export-driven growth trend remains intact.
An unexpectedly large decline in January partly reflected a pullback following a steady run-up last year and adjustments ahead of the mid-February Lunar New Year holidays, which tend to damp Asian demand temporarily, Yuki Masujima wrote. A third straight month of reductions in inventories and corporate plans to ramp up February output suggest manufacturers are still on solid ground.
Industrial production fell 6.6 percent in January (forecast -4.0 percent) from December, the biggest drop since March 2011. Year-on-year output increased 2.7 percent (forecast +5.3 percent).
On the technical charts, Nikkei225 is trading sideways, below the 100 day and the 200 day moving averages. The RSI is at 49.63 and the MACD is above the signal line.
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