Monday, 7th June 2010
In Business In Japan,
Japanese shares fall, echo Wall Street
Sudden falls in shares on Wall Street have caused shockwaves on several Japanese stock exchanges today (June 7th).
On the back of ongoing worries over economic issues in Europe, as well as worse-than-anticipated figures on US unemployment, shares on Wall Street dropped sharply in morning trading. This led to falls of more than four per cent on the Japanese Nikkei 225 Stock Average and 3.51 per cent on the Topix index.
This impacted Japan heavily, as it is a major export and import partner of the US.
Japan's economy has been suffering on the back of its deepest recession since the end of the second world war as well as the global downturn, issues with inflation and a strong yen.
A strong yen spells bad news for export trade as it can make Japanese products less competitive on the international market and can also reduce the amount made on products by Japanese firms.
Written by Kimberley Homer.