KLCI, Asian markets fall on Japan recession

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opening_market_down_theedgemarkets

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KUALA LUMPUR (Nov 17): Malaysia's FBM KLCI and Asian markets fell on news Japan is in recession. This followed a 1.6% on-year decline in Japan's third quarter gross domestic product (GDP).

This is the second consecutive quarter of GDP contraction in Japan, the world's third-largest economy.

At 9.03am, Malaysia's KLCI fell 0.73 point or 0.04% to 1,813.06 on losses in stocks like Petronas Dagangan Bhd and CIMB Group Holdings Bhd.
 
Last Friday, the KLCI fell 2.02 points or 0.11% to close at 1,813.79. Today, analysts said the KLCI's substantial decline this month had led to expectation of a techical rebound in the index.

Hong Leong Investment Bank Bhd analyst Nick Foo Mun Pang said the sharp decline from 1,858 points on November 3 to a low of 1,808 last Friday had pushed the KLCI into oversold position.

"Potential mild rebound this week," Foo wrote in a note.

Today, Bursa Malaysia saw some 56 million shares valued at RM17 million traded. There were 127 gainers versus 56 decliners.

United Plantations Bhd was the top gainer while P.I.E. Industrial Bhd led decliners.

Minetech Resources Bhd was the most-active stock.

Asian stock markets fell. Japan's Nikkei 225 fell 1.42% while South Korea's Kospi declined 0.13%. Australia's S&P/ASX 200 was 0.39% lower.

Reuters reported that Japanese stocks slipped on Monday and the yen stumbled to a fresh seven-year low against the dollar after data showed Japan's GDP unexpectedly shrank in the third quarter, throwing the world's third-biggest economy into recession.

Gross domestic product contracted an annualised 1.6 percent, compared with a 2.1 percent increase forecast by economists in a Reuters poll. That followed a revised 7.3 percent contraction in the second quarter, which was the biggest slump since the March 2011 earthquake and tsunami, Cabinet Office data showed on Monday.