Wednesday, 2nd June 2010
In General Japan News,
Stocks fall on Hatoyama resignation
Stocks on Asian stock exchanges have fallen on news that the Japanese prime minister is to resign.
Yukio Hatoyama is to step down following an ongoing scandal about the location of a controversial US military base, which he promised to remove during his campaign. He has since backtracked on his pledge, causing his popularity among voters to fall sharply.
Following the news, the MSCI index of Asia Pacific stocks outside of Japan fell by 0.9 per cent. As well as this, the Nikkei index in Japan fell by almost one per cent.
The value of the yen also fell against both the dollar and the euro. The fate of the yen could change in coming weeks, however, as one potential successor to Hatoyama is Naoto Kan, the current finance minister.
He has previously stated that a weaker yen may be better for Japan as it may help to stimulate exports.
Written by Mark Smith.