"Investors are being cautious about the European economy"
- Seiji Iwama, a fund manager at Daiwa SB Investments Ltd.
Japanese stocks closed lower on Wednesday after the European statistical office said the euro-area economy shrunk in the second quarter.
The Nikkei 225 Stock Average slid 0.05 per cent, or 4.84 points, to 8,925.04. The broader Topix Index lost 0.29 per cent, or 2.21, to 747.32.
"Investors are being cautious about the European economy," said Seiji Iwama, a fund manager at Daiwa SB Investments Ltd.
"The markets view the U.S. economy as becoming more solid because the data wasn't as bad as people expected. When trading volume is light, investors tend to buy or sell shares based on a company's individual factors."
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