Sector movers: Global luxury stocks gain as Japan postpones sales-tax hike

Data on Monday revealed that Japan fell back into a technical recession in the third quarter, mainly as a result of an increase in the consumption tax rate from 5% to the current 8% in April.

Prime minister Shinzo Abe responded on Tuesday by delaying an unpopular hike in the sales tax to 10% by 18 months to April 2017, as he called a snap election for December.

He said his ministers were putting together a spending package to support the economy, thought to total 2trn-3trn yen and focused on reviving consumer spending, and that he planned to discuss with his coalition partners the possibility of reducing tax rates on some items.

Burberry, the high-end fashion company which has four stores and 10 concessions in Japan, was trading 2.7% higher at 1,592p in afternoon trade.

The company, which has already committed to opening new stores in Omotesando, Shinjuku, Tokyo, and Osaka, said earlier in the year it was aiming to grow its business significantly in Japan, "offering the global collection to the core luxury consumer in the second largest domestic luxury market in the world".

High-end handbag and accessories maker Mulberry was also trading 0.6% higher.

Overseas, stocks such as LVMH Moet Hennessy Louis Vuitton, Pernod Ricard and Remy Cointreau were on the rise in France, along with US peers Michael Kors, Fossil and Coach.

Top performing sectors so far today
Industrial Metals & Mining 1,460.58 +3.11%
Electricity 9,922.13 +1.53%
Oil & Gas Producers 7,667.40 +1.35%
Oil Equipment, Services & Distribution 22,234.26 +1.21%
Personal Goods 24,502.35 +1.13%

Bottom performing sectors so far today
Household Goods & Home Construction 12,278.31 -0.97%
Technology Hardware & Equipment 1,075.19 -0.68%
Industrial Transportation 2,909.48 -0.65%
Mobile Telecommunications 5,107.62 -0.54%
Tobacco 42,330.15 -0.42%