Japan’s economy in the first quarter of 2021 contracted by 3.9%

Nikkei drops slightly, Yen appreciates as Japan’s economy shrinks less than expected

Most of the main stock indexes of the Asia-Pacific region fell on the trading day of June 8 as the Japanese economy in the first quarter of 2021 contracted less than expected.

The Nikkei 225 index fell 0.19% on the trading day of June 8. File photo: AFP

On the Japanese stock market, the Nikkei 225 slipped 0.19% to close at 28,963.56 points, while the Topix index inched 0.1% to 1,962.65 points.

Adjusted government data released today, June 8, showed that the economy shrank 3.9% in the first quarter of 2021, lower than the initial estimate of 5.1%. . Earlier, economists predicted in a Reuters poll that Japan’s GDP in the first quarter would shrink 4.8%.

Thus, the Covid-19 pandemic broke the momentum of the previous two consecutive quarters of the Japanese economy. Japan’s Cabinet Office on May 18 estimated the country’s economy in the first quarter of 2021 shrank by 1.3% from the previous quarter and by 5.1% compared to the same period last year.

The reason indicated is that the Japanese government applied a second state of emergency between January 8 and March 21 to deal with the Covid-19 epidemic, and urged people to limit Going out for dinner and traveling out of town, encouraging working from home. These measures have curbed Japanese private spending on eating and drinking go.

“We expect the Japanese economy to suffer another recession in the second quarter due to the expansion of epidemic prevention measures, which will hit the service industry especially hard,” said Makoto Tsuchiya. , an economist from the global economic analysis and forecasting firm Oxford Economics commented.

“However, we remain optimistic that the pace of recovery (of Japan’s economy – BTV) will improve in the second half of 2021 as domestic demand recovers and is supported by increased vaccinations, and External demand will continue to support Japan’s manufacturing industry,” said the expert Makoto Tsuchiya said.

Mainland China stock market closed in the red today. The Shanghai Composite Index fell 0.54% to 3,580.11 points while the Shenzhen Component lost nearly 1% to 14,716.98 points. In Hong Kong, the Hang Seng index slipped 0.1%, as of late trading.

Elsewhere, South Korea’s Kospi dropped 0.13% and ended the trading day at 3,247.83 points, while the S&P/ASX 200 index in Australia closed 0.15% higher at 7,292.60. . Overall, the MSCI Asia-Pacific index was still down 0.23%.

In the currency market, the US dollar index against other major currencies increased to 90,188, from 89,955 recorded previously. The Japanese yen appreciated and traded at 109.48 JPY to “eat” 1 USD, compared to above 110 JPY to 1 USD recorded last week. The Australian dollar remained firm from last week and converted to 1 AUD/0.7741 USD.

Oil prices traded by Asian time this afternoon. Brent crude oil futures fell 0.62% and traded at $71.05 per barrel, while US crude futures slid 0.61% to $68.81 per barrel.