The Nikkei 225 slipped 0.1% to around 56,900, while the broader TOPIX eased 0.2% to 3,810 on Monday, extending the previous session’s losses after Japan’s fourth-quarter GDP came in below expectations. The economy grew 0.1% quarter-on-quarter in Q4, rebounding from a 0.7% contraction in Q3 but missing forecasts for a 0.4% expansion, stoking concerns about the resilience of domestic demand.
The Bank of Japan has projected a moderate recovery as overseas economies regain momentum, underpinned by a virtuous cycle of rising wages and prices, government stimulus, and accommodative financial conditions. Prime Minister Sanae Takaichi recently reiterated her commitment to supporting growth through proactive fiscal measures, following her landslide victory in the Feb. 8 Lower House election.
Financials led the market lower, with notable declines in Mitsubishi UFJ Financial Group (-2.1%), Mizuho Financial Group (-3.3%), and Sumitomo Mitsui Financial Group (-2.2%).
