Tokyo's stock market closed mixed on Monday as a weaker-than-expected GDP reading weighed on sentiment, with the broader TOPIX index falling and the Nikkei 225 edging higher on selective buying in chip and AI-related names, an analyst said.
The 225-issue Nikkei Stock Average ended up 506.45 points, or 0.74 percent, from Friday at 69,220.25.
The broader Topix index, meanwhile, finished 13.09 points, or 0.31 percent, lower at 4,184.11.
Recapping the session, CGTN analyst Timothy Pope highlighted the key movements in the market.
"The market was broadly lower following a fairly weak quarterly GDP rating. The Nikkei 225 managed to climb 0.75 percent by the close, but that was really only because of some strong gains for a handful of chip and AI sector names. Most Nikkei shares were actually falling today, and the broader TOPIX index was down about 0.33 percent. GDP for the quarter expanded 0.3 percent for the three months to June, but that's an annualized 1.1 percent, which is quite a bit below the median forecast of 2 percent annualized," he said.
"There's a pretty constant drip feed of more Japanese economic data right through this week. But the big release will be consumer inflation on Friday. That CPI reading for July is going to be pretty closely watched, I think, because energy and food costs are expected to push inflation higher again. And that could add to pressure that's already mounting on the Bank of Japan to raise interest rates again," he said.
Tokyo stocks mixed on weak GDP, TOPIX down: analyst
Chinese Premier Li Qiang urged solid efforts to accomplish the objectives and tasks for this year's economic and social development to make a good start in implementing the 15th Five-Year Plan while presiding over a plenary meeting of the State Council in Beijing on Monday.
Li said that since the beginning of this year, China's economy has registered steady growth featuring new momentums and structural improvement.
In the face of problems such as insufficient domestic demand and growing difficulties in some industries and enterprises, Li called for a focus on development goals to continuously push for innovation-driven and high-quality economic development by leveraging existing policies and rolling out new practical and effective policies in a timely manner.
Noting that this year marks the first year of the 15th Five-Year Plan period (2026–2030), Li emphasized the need to give full play to the plan's guiding role in all areas, urging efforts to maintain steady economic operation and expand domestic demand.
Efforts should be strengthened to advance the construction of water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipeline networks and logistics networks, and innovate investment and financing mechanisms to attract social capital, Li said.
Li called for efforts to stabilize external demand and expand the space for mutually beneficial international cooperation in trade and economy.
It is imperative to leverage science and technology to accelerate transition from old to new growth drivers, increase support for emerging pillar industries and future industries, continuously promote the upgrading of traditional industries, and consolidate the foundation for the real economy, Li said.
Li also stressed doing a good job in ensuring and improving people's livelihood, boosting employment, increasing people's incomes, improving public services, carrying out disaster relief, and preventing the resurgence of poverty.
Chinese premier urges efforts to accomplish economic objectives, tasks
