World View
Global Dispatches From ABC News Reporters
ABC News staff around the world report on what makes the news and what doesn't.
RECENT POSTS
MONTHLY ARCHIVES
« Previous | Main | Next »
Japan Markets Make History
October 08, 2008 10:30 AM
By Noriko Namiki, ABC News Tokyo
Maybe the Prime Minister put it best. Talking about today's stock market turmoil, Taro Aso said, "This isn't normal."
There was a lot of history in the numbers today. The third biggest single day drop on record for the Nikkei average -- its biggest since the global market crash of October 1987 -- a fall of 9.4%. Toyota's worst single day since that same dark day 21 years ago --- the automaker fell 12%, largely because investors are afraid that a slowing global economy means people all over the world will be buying fewer cars -- especially in Toyota's biggest market, the united states. Honda's day wasn't quite as bad -- it fell a mere 10-percent.
The automakers were also hurt by movements in the currency market -- where the yen strengthened to below 100 to the dollar for the first time since April. A stronger yen makes life more difficult for exporters -- because when products are sold for dollars, they're worth less profit for the company when the yen gains in value.
That was another theme for the day -- worries for exporters. Many of Japan's global corporate names are built on their sales around the world -- not only the automakers, but also companies such as Sony, Panasonic, and Canon.
"This crisis will put a halt on investment and consumption. This makes economic recovery extremely difficult," said Fujio Mitarai, the chairman of Japan's major economic group, Keidanren who is also Chairman & CEO of Canon. "Governments and central banks of the world should keep working together closely to calm down unrest among financial sector," Mitarai said.
Japan's lower house of parliament just passed a 1.8 trillion yen ($17.8 billion) economic stimulus package late today. This was originally intended to offset rising energy costs. Prime Minister Aso hinted that Japan may consider an additional package as the weakening global demand for consumer items such as cars and electronics, already susceptible to the rising yen, could cause a "drastic decline" in exports.
Japan's Economic and Fiscal Policy Minister Kaoru Yosano said to reporters that the Japanese government is willing to work with its U.S. counterpart as the U.S. tries to plow through its banking crisis and get the country's economy and financial system back in order.
After the market closed, Japan did not take part in the global rate cut engineered by the U-S, the U-K and the European Union. But officials at the Bank of Japan issued a statement saying they "support" the action, although they have less room to move -- because interest rates are already low at half a percent. But that support may turn into some enthusiasm once Japanese stock traders start their day on Thursday.
Read more blogs from Noriko Namiki
Read more World View Blogs from ABC News staff
October 8, 2008 in Noriko Namiki | Permalink | User Comments (6)
You can follow this conversation by subscribing to the comment feed for this post.
Talk about a global economy! This is so inter-related, and we need a president of the world now. And that person is Barack Obama!!
Posted by: Guy From LA | Oct 8, 2008 2:08:41 PM
The Anti-Christ approaches!
Posted by: SaveUs | Oct 8, 2008 3:41:01 PM
whats really quite humorous is the thought by most that when obama takes office he w/fix this whole mess but the problem is that when he screws it up the dems will still blame the bush administration. the truth to all of this is that it is both parties faults and it really doesnt matter at this point which one of them takes office as they are biting off more than they can chew and we are all screwed in one way shape or form. its time to overthrow the government. please vote for the opposing party of every incumbent on the ticket
Posted by: doug | Oct 8, 2008 4:01:44 PM
Sorry to say it but When Obama wins I going to feel sorry for him he is going to have to fix 8 years of bushes mistakes before he can even begin to do anything new. He is pretty much being set up to fail or atleast not do as well as he could.
Posted by: pewpew | Oct 8, 2008 8:45:35 PM
Why feel sorry for Obama? He wants the job. I feel pity for both Mc Cain and Obama for being dumb enough to want the job as president in the next 4 years.
They both think the glory could be theirs if they turn it around but we saw from hoover and then carter that no president does well once the economy tanks.
Posted by: infoseeking | Oct 9, 2008 4:15:24 AM
We Need a Hero:
How about MAD DOG McCain...
HE KNOWS NO FEAR....
HE KNOWS NO DANGER...
HE KNOWS NOTHING....................
Ever is a Elephant in a china shop ?
Posted by: Anita Yova | Oct 15, 2008 12:37:22 PM
Post a comment
