Friday, 14th March 2008
In Business In Japan,
Recession fears hit Nikkei
Fears of a Japanese recession are growing as the Nikkei recorded a new low today (March 14th), mainly due to the US dollar's weak showing in the international economy.
The plummeting value of the dollar has led to a domino effect on Japan's economy as more and more people invest in euros to take advantage of the dollar's weak position, according to Japan Times.
Technical analyst for Nikko Citigroup Yutaka Yoshino is quoted as saying: "The major reason for the decline in the Tokyo market is the sudden weakening of the dollar against the yen, but it'll probably be temporary."
Benchmark Nikkei 225 saw a record-breaking nosedive on Thursday as it hit a year's low of 12,433.44, down 427.69 points - 3.33 per cent - in just one day.
According to the newspaper this correlates directly to the dollar dipping to under ¥100 for the first time since November 1995 on Thursday.
The news follows a recent report by Reuters that the US is already in recession, with some estimates claiming the housing market alone will drop by another ten to 25 per cent.