Japan's Nikkei index down 1.27% despite extra budget announcement

27 February 2013 10:20  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s benchmark Nikkei 225 index closed 1.27% lower on Wednesday because of a stronger yen (Y), as investors largely ignored the Y13,100bn ($142bn)  supplementary budget that the country’s parliament passed a day earlier in a bid to tackle deflation.

The index slipped 144.84 points to 11,253.97 at the close of trade. Shares of major petrochemical firms were largely mixed, with Mitsui Chemicals up 0.45%, Mitsubishi Chemical ending flat and Asahi Kasei down 0.90%. JX Holdings ended 1.06% lower.

The extra budget for the year ending 31 March will be used to finance the government’s economic stimulus plans, according to media reports.

Japan, the world’s third biggest economy, is suffering from decades of deflation, and slumping exports as its major markets – the US and Europe – continue to struggle with their respective economic and financial ills.

($1 = Y91.95)

By: Nurluqman Suratman

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