HONG KONG--Japanese stocks fell Friday as investors digested
domestic inflation data after the latest Russia-Ukraine tensions
pushed the U.S. market lower overnight.
The Nikkei Stock Average, which has rallied since May, was down
0.4%, as data showed Japanese prices rising briskly in July,
suggesting that the country's economic recovery remains intact
despite the recent contraction in growth.
The government reported the consumer-price index rose 1.3% on a
year-to-year basis in July, excluding a sales-tax increase that
took effect in April, and matching the on-year rise in June. The
measure is closely watched to see how far inflation is from hitting
the Bank of Japan's 2% target, key for determining how successful
Prime Ministry Shinzo Abe's economic policies have been.
"Unless major shocks occur or the economy falls into a
recession, it would be tough to breach the 1.0% mark in a short
span of time," said Akiyoshi Takumori, chief economist at
SumitomoMitsui Asset Management. "On the other hand, getting close
to 2.0% also looks difficult."
The dollar changed hands recently at Yen103.73, compared with
Yen103.72 late Thursday in New York.
Australia's S&P ASX 200 wavered ahead of the U.S. Labor Day
weekend and amid a continued slide in iron-ore prices. Spot iron
ore fell 1% to a fresh two-year low at US$87.30.
In the U.S., the S&P 500 fell 0.2% after Ukraine accused
Russia of invading its territory, though U.S. equities were
supported by an upward revision in U.S. gross domestic product
data.
Reporting season wraps up Friday. Australian retailer Woolworths
was up 2%, after earnings came in within expectations, despite
sales growth in Australian food and liquor falling 2.5% in the
fourth quarter.
Tatsuo Ito and Bradford Frischkorn contributed to this
article.
Write to Chao Deng at Chao.Deng@wsj.com
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