We heard the news since last week about US Stock Markets looking weak, due to the failing Asian Market. It seems that Japanese markets are also looking grim as more and more stocks began moving into the bearish zone. Red took over the Nikkei trading screens as concerns rose about the decline in export due to the rise of the Yen.
If the Yen continues to soar, it could hurt local companies’ global competition and would also cut into profit from export. The Nikkei closed down below 5.4% on Tuesday, while Thursday’s closing was a further 2.3%, to a total of 15713.39 points.
With the downfall of the Asian markets, foreign markets in Europe and the United States faced the brunt as well. Also, Snowstorm Jonas hit New York a couple of weeks ago, causing markets to be shut for a couple of days.
Another financial sector hit by the bearish market in Japan are lenders – banks and other loan companies that have been lending and will face the brunt of dismal markets. Nomura, a famous Japanese bank and lender closed at below 3.5%, while Sumitomo closed at below 4%.
For more on this story, visit bbc.com.
