Tokyo investors to focus on Japan GDP figures next week

Tokyo equity investors will focus on what are expected to be downbeat Japanese GDP figures next week, on the back of fears about China's economy after a series of yuan devaluations. On Monday, official growth data for three months to June will be published, after stronger-than-expected figures in the first quarter.
The 1.0 percent expansion in January-March - or 3.9 percent on an annualised basis - was sharply up from an initial estimate of 0.6 percent growth. But economists have warned that tepid data since point to a marked slowdown in the world's number three economy during the latest quarter.
"We think the economy was stuck in the doldrums in the quarter due to sluggish spending and stagnant exports," said Japan Research Institute economist Yusuke Shimoda, pointing to strong business and trade links between Tokyo and Beijing.
"China's economic slowdown may send the Japanese economy down further in the current quarter."
China's central bank slightly raised the value of its yuan currency Friday against the US dollar, ending three days of falls after a surprise devaluation this week sent financial markets into a tailspin.
The stronger fixing for the yuan came after the People's Bank of China reassured financial markets by pledging to seek a stable currency after a shock cut of nearly two percent on Tuesday.
But investors continued to fret about the fallout for the Japanese economy and shares in companies with exposure to China have been hit hard in Tokyo this week.
"While CNY (yuan) devaluation may be paused for the moment, it is still quite likely to see further declines over the coming months," said Angus Nicholson at IG Markets. "These concerns are still weighing on the Nikkei."
On Friday, the benchmark Nikkei 225 index at the Tokyo Stock Exchange slipped 0.37 percent, or 76.10 points to 20,519.45. It lost 0.99 percent over the week.
The Topix index of all first-section shares declined 0.21 percent, or 3.49 points, to 1,664.46, taking the week's losses to 0.88 percent.
In Tokyo share trading, Toyota ended flat at 7,945 yen and Fuji Heavy Industries jumped 1.69 percent to 4,660 yen, while Mazda slipped 0.66 percent to 2,394.5 yen. The three companies were reportedly affected by huge explosions in Tianjin, China, that left 50 dead.
Market heavyweight Fast Retailing, which operates the Uniqlo chain, fell 0.94 percent to 54,990 yen.
In currency markets, the dollar traded at 124.36 yen against 124.43 yen in New York.