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| China-Japan-Koreas |
| Asian Stocks Fall on Bleak Economic Data |
| 2008-10-25 |
| A continued flow of poor economic news undercut stocks across Asia and Europe again Thursday, with Japan reporting its lowest trade surplus in 27 years, factory orders dropping in Europe and consumer products giant Sony slashing its expected profit in half. The accumulating evidence of a slipping economy and possible recession has pummeled global stocks in recent days, even as the financial and credit crisis shows some signs of abating. Markets in Japan and across most of Asia fell again Thursday, as grim government numbers showed the region's real economy sinking along with global demand for its exports. The markets in Europe were generally flat. The benchmark Nikkei average skidded 7 percent in initial trading before recovering to close down 2.5 percent. Stocks in Hong Kong also recovered slightly after falling more than 6 percent, closing down 3.5 percent on the day. Stocks in China rose for the first time in three days. Government data suggested that the Asia-Pacific region is either headed for or mired in a recession. Japan's trade surplus plunged 86 percent in the past six months and is the smallest in nearly 27 years, said the Finance Ministry, where officials acknowledged this week that Japan was probably in a recession. A soaring yen, collapsing global demand and rising import costs are hobbling the world's second-largest economy, which depends on exports to the United States, Europe and China for growth -- and all three are facing economic slowdown. The rise in the Japanese currency and falling global demand led Sony to cut by well over 50 percent its expected profit for the year. Sales of some of the company's staple products -- flat-panel televisions and compact digital and video cameras -- will "be lower than the previous forecast due to a deterioration in the market environment brought on by the slowing global economy," Sony said in a news release. Another telling measure of prospects for Japanese exports was the price of stock in Mazda Motor Corp., which fell 11 percent Thursday. Japanese exports to the United States have declined for 13 consecutive months. As export demand slumps, so does the value of shipping companies. World shipping rates for commodities fell this week to a six-year low. The stock of Japan's third-largest shipping firm, Kawasaki Kisen Kaisha Ltd., fell Thursday to its lowest level in five years. |
| Posted by:Fred |