Monday, 9th August 2010
In Business In Japan,
Japanese stocks fall on US data
Japanese stocks have value on the back of weak data from the US and a continually strong yen.
News that Goldman Sachs has cut its economic growth estimates for both 2010 and 2011 also saw stocks decline, with large Japanese firms such as Canon and Toyota being among the hardest hit.
Data from the US about unemployment levels could lead to an easing of monetary policy by the US government and this in turn could have an affect on the currency market, analysts said.
A strong yen can also negatively impact the Japanese economy as it may lead to anaemic demand for Japanese products from overseas companies, due to the repatriation costs of exporting goods from the country.
As well as lowering economic growth forecasts, Goldman Sachs warned that demand among Japanese consumers also looks likely to slow down in the coming months.
New prime minister Naoto Kan has several times called for a weaker yen but many in the country have said his dire warnings about the state of Japan's finances are over zealous.