"There are no positive signs in Japan's economy"
- Azusa Kato, an economist at BNP Paribas SA
Japan posted its slowest pace of growth in retail sales in September since March 2011, when country was hit by tsunami. According to the Ministry of Economy Trade and Industry retail sales added only 0.4% in September from a year earlier, from 1.7% in the prior month. On the monthly basis, sales tumbled 3.6% from August, a sign the economy may slid into a mild recession.
"There are no positive signs in Japan's economy," as domestic demand slumps and external demand remains weak, said Azusa Kato, an economist at BNP Paribas SA in Tokyo. "The economy will probably contract for two consecutive quarters through the end of the year."
"This is another sign that growth is slowing, and reconfirms the weakness of business activity and domestic demand," said Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo.
The Nikkei 225 Stock Average surged 0.41% per cent, or 36.27 points, to 8,965.61. The broader Topix Index advanced 0.17% per cent, or 1.28 points, to 741.58.
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