Nintendo Co. slid 5.7 percent after a 59 percent rally over four days spurred by the popularity of its mobile-game app Pokemon Go. Global shares rose Monday, July 11, 2016, after Wall Street rose on a strong US employment report and as investors recovered gradually from post-Brexit jitters.
For fiscal 2017, the government is likely to project Japan's economy to expand around 1.2 percent in real terms and 2.2 percent in nominal terms, the sources said.
The down under dollars were both weaker against their USA cousin, with the Aussie off 0.18% at AUD 1.3143 per $1 and the Kiwi losing 0.23% to NZD 1.3730.
"A while ago, everything looked so uncertain on Brexit". British Chancellor George Osborne is spending the week on a tour of global financial capitals in an attempt to shore up confidence in the United Kingdom economy, while the leader in the race to be next prime minister, Theresa May, has promised a crackdown on corporate irresponsibility in a speech given this morning. "That is soothing investor sentiment", said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. Other regional indexes were more subdued, with South Korea's Kospi edging up 0.1 percent to 1,990.46 and Hong Kong's Hang Seng adding 0.7 percent to 21,021.69.
An optimistic tone has filtered through trading floors all week, after US data Friday showed the world's No. 1 economy created far more jobs than expected last month.
On Monday, after a landslide victory in Upper House elections and as evidence mounted the corporate sector is floundering due to weak demand, Abe ordered a new round of fiscal stimulus spending.
Abe promised a new round of fiscal stimulus and spending following the victory, part of his trademark "Abenomics", with analysts expecting the Bank of Japan to increase its policy spending.
The dollar rose 1 percent to 103.92 yen, its strongest since June 24, when the British referendum result roiled global markets.
The Bank of England meets on Thursday and might cut its 0.5 per cent interest rate to offset the economic drag from Britain's European Union exit. The European Central Bank is also widely expected to take a dovish stance when it holds its policy review a week later. MSCI Asia Pacific Index gained 0.2 percent to 132.06 as of 9:01 a.m.in Tokyo. The euro rose to $1.1054 from $1.1049.
On the currency front, the US dollar is trading at 104.61 yen compared to the 104.69 yen it fetched at the close of NY trading on Tuesday.
The dollar rose 0.4 per cent on Monday against a basket of major currencies and was 1.4 per cent against the yen, which is viewed as a safe investment in times of market turmoil.
They had surged about 5 percent on Tuesday, however, on short-covering and broad improvement in risk sentiment.
In Asia, one key focus is Chinese trade data later in the day, which will come ahead of China's GDP data on Friday.