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Asian stock indices traded mixed. The Japanese index Nikkei 225 decreased due to stronger yen and the earnings forecast of Sony Corp. The yen was supported by good economic data in Japan. On a yearly basis, Japan's gross domestic product climbed (preliminary) 5.9% in the first quarter of 2014, from a 0.7% rise in the fourth quarter of 2013. Analysts had expected a 4.2% increase. On a quarterly basis, Japan's gross domestic product rose (preliminary) 1.5% in the first quarter of 2014, from a 0.2% increase in the fourth quarter of 2013. Analysts had forecasted a 1.0% increase.
The Bank of Japan Governor Haruhiko Kuroda said at the Annual Tokyo Conference the Bank of Japan will continue its Quantitative and Qualitative Easing to achieve its 2% inflation target within 2 years. Market participants were disappointed due to the likelihood for further stimulus measures by the Bank of Japan is lower now.
The Hong Kong stock index Hang Seng increased led by technology shares.
Indexes on the close:
Nikkei 225 14,298.21 -107.55 -0.75%
Hang Seng 22,730.86 +148.09 +0.66%
Shanghai Composite 2,024.97 -22.94 -1.12%
Sony Corp. shares dropped 6.1%, as the company forecast an annual loss.