Japanese stocks went into the lunch break....>

STOCKS: Japanese stocks went into the lunch break in the red, the Nikkei 225

down 164.76 points at 19,564.98. The index was sharply lower at the open after

Japanese markets were away on Friday for Mountain Day, a day when global markets

saw heavy losses as US/North Korea tensions escalated.

- The index has come off lows after positive GDP data from Japan. Headline GDP

rose 1.0% against estimates of 0.6% from a final 0.4% in Q1, the annualised

figure rose 4.0% while private consumption and business spending both rose

strongly. Any rise has been moderated as USD/JPY holds below 110.00

- On the Nikkei 225 10/11 sectors are in the green, financials leading the way

lower as yields fall across the board with US/North Korea tensions seemingly

halting their escalation cycle. Comments from LDP's Motegi that there was no

need for fiscal stimulus has also weighed slightly on stocks.

- Other stocks in the region are in the green, the ASX 200 up around 42 points

after falling sharply on Thursday and Friday last week. Mainland China and Hong

Kong are also in the green. The gains come as US stocks also recover from last

weeks drop, with a weaker set of Chinese data having little impact.