Tokyo Nikkei 225 closes up 0.12% at 39,631 points (Il Sole 24 Ore Radiocor) - Tokyo , 01 Jul - Japanese shares trimmed earlier gains and closed flat to slightly higher after Friday's gains.

Investor sentiment soured after Tokyo unexpectedly revised first quarter gross domestic product data to show a much deeper contraction than initially expected, highlighting growing challenges for the Japanese economy.

Japan revised its first-quarter GDP contraction to 2.9% year on year, from 1.8% reported earlier. Third and fourth quarter GDP figures for 2023 were also revised downward.

Prospects of a weaker economy however could ease pressure on the Bank of Japan to increase interest rates, helping cap the losses.

Also von the data front, in June Japan's purchasing managers' index (PMI) for the manufacturing sector fell to 50.0 from 50.4 in May, according to figures released by S&P Global and its partner au Jibun Bank.

The Nikkei index closed up 0.12% at 39,631 points.

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(RADIOCOR) 01-07-24 08:46:31 (0128) 5 NNNN