Asian stocks plunge on US job data

US Unemployment stands at 9.1 percent

Source: Press TV
http://www.presstv.ir/detail/197586.html

Asian stock markets have plummeted on Monday amid concerns of deteriorating global economic downturn in the wake of disappointing US job data.

Japan's Nikkei average skidded nearly 2 percent, while South Korea's KOSPI slipped 4.4 percent. Benchmarks in Singapore, India, Taiwan, and China were also down, Bloomberg reported.

Meanwhile, stock markets in Europe also took a nosedive at the start of trading on Monday. London's Footsie 100 Index dropped 1.6 percent at the open, while the DAX in Frankfurt tumbled by over 2 percent.

The dismal US jobs report sent the euro to its lowest level against the dollar in Asia as risk appetite was eroded by renewed worries over Greek debt crisis and fears of a possible recession in the US economy.

The US economy failed to add jobs last month for the first time in almost a year, raising the odds of a new recession and putting pressure on President Barack Obama and the Federal Reserve to revive a waning employment market.

Currently the unemployment rate in the United States stands at 9.2 percent, the worst level since President Ronald Reagan was in office in the 1980s.

Experts say that current policies are crippling job creation efforts and at the rate at which America has lost jobs, an employment recovery may take years to take effect.

Moody's lowers Japan's rating to Aa3

Businessmen pass before a prices board in Tokyo. (file photo)

Source: Press TV
http://www.presstv.ir/detail/195437.html

Major credit rating agency Moody's Investors Service has downgraded Japan's sovereign debt rating by one notch to Aa3.

The ratings agency, which performs international financial analysis on commercial and government entities, cut Japan's government debt rating on Wednesday, blaming the country's large budget deficits for the downgrade, Reuters reported.

The build-up of debt since the 2009 global recession was cited as another reason for the new rating, which concluded a review begun on May 31, putting pressure on the Japanese government to address the country's growing economic woes.

"Several factors make it difficult for Japan to slow the growth of debt-to-GDP and thus drive this rating action," Moody's said in a statement.

Japanese Finance Minister Yoshihiko Noda declined to comment on the Moody's move, but appreciated government efforts, saying, "The smooth sales of Japanese government bonds at recent auctions show that confidence remains unshaken.”

Japan is still struggling with aftermath of the huge quake and subsequent tsunami that hit the country back in March.

The credit rating assesses the credit worthiness of a government's debt issues, a financial indicator to potential investors of debt securities such as bonds.

Japan on edge of recession: Survey

Reports say Japan is sliding into recession after a massive earthquake and tsunami hit the world's number three economic power last month

Source: Press TV
http://www.presstv.ir/detail/173140.html

A new survey shows Japan will likely plunge into recession in the upcoming months, following the March 11 earthquake and tsunami and a nuclear crisis in the Asian nation.

After a survey of 11 major private economic institutions, the Nikkei business newspaper reported on Tuesday that Japan's economy is feared to shrink 2.6 percent on the average.

Some economists, however, painted a gloomier picture of the current situation in Japan, predicting a 7.1 percent drop in the disaster-hit country, the Japanese daily said.

It added that no recovery was expected until the July-September quarter.

Apart from the tragic human toll, the triple disaster in Japan has destroyed much of the nation's infrastructures, knocked out power and disrupted the supply chain, forcing many companies and manufacturers to shut down production.

The crisis has also slashed business confidence, reduced exports and discouraged consumer spending in the world's number three economy.

Japan has so far put the cost for last month's earthquake and tsunami, which has officially left 11,938 people dead, at 25 trillion yen ($297 billion).

The estimate does not account for wider issues such as the effects of radiation from the damaged Fukushima nuclear power plant.

On Saturday, Japan's Nuclear and Industrial Safety Agency said the level of radiation in the seawater near the Fukushima plant has reached more than 4,000 times the legal limit.

Reports indicate that some food products from towns around the epicenter of the nuclear crisis have already been contaminated.

Japan injects 5 Trillion Yen into troubled markets

Source: Press TV
http://www.presstv.ir/detail/170361.html

The Bank of Japan (BOJ) has injected 5 trillion yens (USD 61 billion) to calm the country's upset financial markets following Japan's devastating March 11 earthquake.

The BOJ said on Thursday that its total liquidity injection reached 60.6 trillion yen (USD 739 billion) since Monday, Xinhua reported.

The injections come after the devastating temblor, Japan's strongest on record, and the ensuing tsunami on Friday, which collapsed the country's banking system.

The move would possibly decrease the value of yen and increase the country's inflation, analysts said.

The massive quake's death toll has reached 4,314 while at least 9,000 are unaccounted for.

The catastrophe and deepening nuclear crisis, caused at the Fukushima power plant reactors, could result in losses of up to USD 200 billion for the world's third largest economy.

The Japanese government on Wednesday ordered emergency workers to withdraw from a stricken nuclear plant amid a surge in radiation, temporarily suspending efforts to cool the overheating reactors.

The nuclear crisis has triggered international alarm and partly overshadowed the human tragedy caused by the 9.0-magnitude earthquake.

Meanwhile, Japanese stocks suffered their worst two-day rout since the 1987 crash on Monday and Tuesday, losing USD 626 billion in value, before rebounding 5.7 percent on Wednesday.