8:30 PM Tokyo – Tokyo stocks declined for the third day in a row and the Nikkei index dropped 4.6% at the close of the week, the largest weekly loss in four years. Investors sold stocks linked to China after the latest batch of economic data signalled healthy but slowing economic growth.
After the close, the European Commission lowered economic outlook for the euro zone and said Spain’s deficit is likely to exceed its target and hover above 6% for this and next year and euro zone economy is expected to shrink 0.3% in the year.
China reported a raft of economic data on inflation, retail sales and industrial production all highlighting a slow decline in economic growth.
China''s industrial production growth slowed to 9.3% from a year earlier in April, the latest data from the National Bureau of Statistics showed.
Inflation eased to 3.4% in April from 3.6% in March and retail sales increased 14.1% from a year ago in April, slower than the 15.2% rise in March.
The yen in Tokyo trading strengthened and the euro eased to 103.24 yen and the dollar weakened to 79.65 yen.
The Nikkei 225 Stock Average slipped 56.34 to 8,953.31 and the broader Topix index edged down 7.04 to 758.38. For the week, the Nikkei dropped 4.6%, the most in four years.
Trading volume declined to 3-month low on the main board of Tokyo Stock Exchange to 1.33 billion shares.
Sharp Corp dropped 21 yen or 5.1% to 390 yen and extended losses in the year and dropped to a new multi-decade low as the company struggles to revive its fortunes.
Kansai Electric Power Company, Inc decreased 12 yen to 1,078 yen and Tokyo Electric Power slipped 11 yen to 185 yen.
Toyota Motor closed up 65 yen to 3,235 yen and Honda Motor Co. soared 41 yen to 2,752 yen and Nissan Motor Co Ltd advanced 21 yen to 804 yen.
Sony Corp shrank 78 yen to 1,135 yen after it reported large annual loss and estimated net income of 30 billion yen or $376 million in the current year, significantly less than expected by analysts.
Panasonic Corp closed down at 9 yen to 570 yen and Canon Inc rose 5 yen to 3,465 yen.
Olympus Corp unchanged to 1,130 yen, Nikon surged 195 yen or 8.5% to 2,474 yen and estimated full year net income of 65 billion yen.
Fanuc Ltd soared 70 yen to 13,360 yen. Hitachi Ltd gained 17 yen to 501 yen.
Komatsu Ltd unchanged to 2,052 yen and Hitachi Construction Machinery Co decreased 17 yen to 1,554 yen.
Inpex Corp fell 0.9% to 484,500 yen and Japan Petroleum Exploration Co. unchanged to 3,300 yen.
Mitsui O.S.K. Lines, Ltd slipped 10 yen to 272 yen, Kawasaki Kisen Kaisha, Ltd fell 3 yen to 139 yen and Nippon Yusen K.K. closed down at 4 yen to 204 yen.
Nippon Electric Glass Co Ltd slumped 19 yen to 551 yen and Asahi Glass Co Ltd slides 9 yen to 578 yen.
Fast Retailing Co. plunged 190 yen to 16,450 yen and J. Front Retailing Co. Ltd fell 8 yen to 386 yen.