Tuesday, 17th August 2010
In Business In Japan,
Japanese economy falters
The Japanese economy is continuing to falter, with stocks on a number of exchanges rapidly losing value.
As well as this, weak data from the US and uncertainty over the Japanese government's next step to try and stimulate the ailing market are also having an impact.
According to figures reported by Bloomberg, the Topix has fallen 17 per cent compared to the year-and-a-half high it was enjoying back in April. It noted that some economic experts consider anything over a 20 per cent drop from a recent high to point towards the beginning of a bear market.
The Nikkei stock exchange was also impacted and fell to its lowest level since last November.
General manager at the investment arm of Chuo Mitsui Asset Management in Tokyo Naoteru Teraoka told Bloomberg that "political uncertainty" is "weighing" on the markets in Japan.
Japan's strong yen is also causing issues for the nation overseas, with foreign investment faltering as buyers continue to be put off by the sturdy currency.
Written by Kimberley Homer