RTTNews - The stock market in Japan ended in negative territory on Monday despite better than expected economic data, amid concerns about shareholder value after reports suggested that Daiwa Securities and Mizuho Financial UFJ will sell shares. Traders also preferred to adopt a wait-and-watch approach ahead of key economic reports such as the results of the quarterly Tankan Survey and the June employment report from the U.S.

In the U.S, the major indices ended Friday's session mixed on either side of the unchanged line characterized by low volumes as traders shrugged off mixed economic data amid increasing concerns about recovery.

On the economic front, traders digested a report from the Commerce Department which showed that personal income jumped 1.4% in May following an upwardly revised 0.7% rise in April. Excluding the effects of the stimulus bill, disposable personal income, or personal income less personal current taxes, increased by a much more modest 0.2% in May, the report revealed. The report also indicated that that personal spending rose 0.3% in May, in line with economists' estimates, after coming in unchanged in the previous month.

Separately, a report from Reuters and the University of Michigan showed that the consumer sentiment index was revised up to 70.8 in June from the preliminary reading of 69.0, coming in above the May reading of 68.7. Economists had been expecting the index to be unrevised at 69.0.

While the Nasdaq closed up by 8.68 points or 0.5% at 1,838, the Dow slipped by 34.01 points or 0.4% to 8,438 and the S&P 500 fell 1.36 or 0.2% to 919.

The Nikkei 225 Average opened slightly lower at 9,866 compared to its previous close of 9,877, but it moved above the unchanged line on positive industrial production report. However, negative sentiment generated by announcements regarding stock sales dragged the indices below the unchanged line. The average ended weaker at 9,783, representing a loss of 93.92 points or 0.95%. The broader Topix Index of all first section issues declined 11.78 points, or 1.2% to close at 915.

Light sweet crude August delivery ended at $68.76, down 40 cents, in the Asian session after losing $1.07 and settling at $69.16 per barrel in New York on Friday on demand concerns.

On the economic front, the Ministry of Economy, Trade and Industry revealed that industrial output in the country jumped 5.9% in May compared to the previous month. Separately, the Ministry revealed that retail sales eased 2.9% year-on-year during May following a 2.8% decline in the previous month.

Mizuho Financial, the second largest bank in the country, led the declines following reports that the bank is planning to raise 600 billion yen through the sale of new shares. The stock declined 4.18%. Among others in the banking space, Mitsubishi UFJ Financial lost 2.78%, Resona Holdings fell 1.95% and Sumitomo Mitsui lost 2.00%.

Daiwa Securities declined more than 11% following the news that the company would raise funds in a public offering. Nomura Holdings fell 4.21%.

Oil stocks ended weaker on lower crude oil prices. Inpex Corp. declined 2.52%, Nippon Oil Corp fell 2.63% and Showa Shell lost 1.93%.

Shipping stocks declined after the Baltic Dry Index declined sharply last week. Mitsui O.S.K Lines fell 3.13%, Kawasaki Kisen lost 3.14% and Nippon Yusen declined 2.83%.

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