Business

Asian Stock Markets Rise Despite Japanese Economic Woes

Asian Stock Markets Rise Monday

Asian stock markets rose Monday as data showed the economy of earthquake-battered Japan shrank less than expected.

Japan’s Nikkei 225 index stood 0.9 percent higher at 9,041.90 after the government announced the economy had contracted at an annualized rate of 1.3 percent in the April-June quarter.

While that was the third straight quarter of contraction for the world’s third-largest economy, it was better than an annualized 2.6 percent fall forecast in a Kyodo News agency survey.

The news was enough to boost Japanese stocks that might otherwise have taken a beating as the yen continues to strengthen. Toyoto Motor Corp. and its smaller rivals, Honda Motor Corp. and Nissan Motor Corp. each gained more than 2 percent.

Consumer electronics giant Sony Corp. rose 3.5 percent and video game maker Nintendo Co. soared 7 percent.

Japan‘s economy was thrown into a tailspin on March 11 when a mammoth earthquake and tsunami wiped away much of the country’s industrial northeast. Entire towns were washed away; infrastructure, utilities and factories vital to production were destroyed.

Elsewhere, Hong Kong’s Hang Seng index shot up 2.1 percent to 20,027.32, while Australia’s S&P ASX 200 jumped 1.8 percent to 4,248.60. Benchmarks in Singapore, Taiwan, the Philippines and mainland China were also higher. South Korea’s Kospi index was closed for a public holiday.

Global markets fluctuated wildly last week as investors already concerned over Europe’s worsening debt crisis were further rattled by signs the U.S. might be headed toward recession.

The U.S. Federal Reserve last week signaled that it would keep interest rates super-low for two more years because of expectations that unemployment will remain high and economic growth slow.

The Fed’s decision came after the government said the U.S. economy had barely expanded in the first six months of this year.

The euro strengthened to $1.4312 from $1.4245 late Friday in New York. The dollar fell to 76.91 yen from 76.75 Japanese yen.

The Associated Press contributed to this article.

Comments (11)

  • Gypsy123
    Posted on August 19, 2011 at 2:15pm

    As someone I don’t remember who said this is a False Market. When it drops companies start buying up their own stocks to save their own butts. Investors are not investing they are being duped!

    Report Post » Gypsy123  
  • sizzlinsexybeckster
    Posted on August 15, 2011 at 4:26pm

    I do not care.

    Report Post »  
    • AvengerK
      Posted on August 16, 2011 at 3:07pm

      Contrary to Obama’s economic woes and who says: It’s not my fault. It’s the weather, it’s Europe, it’s the Arab Spring, it’s Wall Street, it’s the greedy rich, it’s low revenue, it’s an unbalanced approach, it’s the oil companies, it’s the banks, it’s mortgage companies, it’s credit card companies, it’s ATM machines, it’s unemployment benefit limits, it’s all those wars, it’s right to work states, it’s global warming, it’s the debt ceiling debate, it’s oil speculators, it’s the internal combustion engine, it’s Republicans, it’s incandescent light bulbs, it’s low emission standards, it’s the Tea Party, it’s Rush Limbaugh, it’s FOX News, it’s – it’s – it’s – it’s time for another vacation and a couple of rounds of golf.

      Report Post »  
  • Mateytwo Barreett
    Posted on August 15, 2011 at 10:20am

    Aw- —- Helll, yeah! I’ve tried to make sense out of what is going on in tne market for several years. I can’t feal with the crapola the l“analysts” spew as the reason for certain movements. “Well, thre market went up today 147 pts on news athat Crotchseliniva will not be defaulting on its debt to the Sudan, because Greece has reached a decision to “bailout” the Montchkens. Either it’s total BS or the “market” is nothing more than a distraction. Remember the good ol’ days when people took a “risk” and actually started a business. the kind with real people doing real things to provide a real product that was of actual use!! Unlike the latest app for your new $400 phone from China! It rough getting old and seeing all this go to hell in a handbasket- it really is!

    Report Post » Mateytwo Barreett  
  • Miami
    Posted on August 15, 2011 at 3:54am

    Can you say market manipulation…

    It’s not like a certain Billionaire would ever do that…..

    He’s holding nearly a billion in gold, made almost as much on the US down grade. Gee I wonder if he told Obama to say that the country would default without credit increase to create a panic…?

    Is there any wonder he’s a wanted man in Indonesia and China…?

    Report Post » Miami  
  • 1TrueOne55
    Posted on August 15, 2011 at 1:50am

    Watch out for the Weimar effect!!! The government prints money and inflation gets out of control.

    Report Post » 1TrueOne55  
  • sooner12
    Posted on August 14, 2011 at 11:18pm

    I remember a time getting over 340 yen for a dollar.

    Report Post »  
  • Stoic one
    Posted on August 14, 2011 at 10:54pm

    It is the pattern that concerns me; volatile, and uncertain.

    Report Post » Stoic one  
  • Jediusetheforce
    Posted on August 14, 2011 at 10:42pm

    The stock market in the US is rigged and needs an overhaul. The giants know how to run it.

    Report Post »  
    • seeker9
      Posted on August 14, 2011 at 11:14pm

      I don’t think that it is that rigged. I’ve been in it for years. There are a few cases of insider trading, but for the most part it’s ok. You have to keep in mind that the big players have advantages with instant access to news and the like. They are equiped with computer programs that do automatic trading. If a small player like me can avoid getting too greedy, should do fine. Also, know that everyone gets it wrong about half the time, so avoid big losses at all cost (don’t let a small loss turn into a huge loss).

      Report Post » seeker9  
    • Psychosis
      Posted on August 14, 2011 at 11:29pm

      the only thing that is rigged is government intervention

      the reason why japans market is up is not because of supposed growth………………it is the reverse reason why our market is up

      NONE OF THE ABOVE NAMED MANUFACTURERS HAD A LOSS OF MANUFACTURING DUE TO THE EARTHQUAKE AS THEIR OVER SEAS SALES AND MANUFACTURING IS THE BIGGEST PARTS OF THOSE COMPANIES 80 % OF THE MANUFACTURING FOR THOSE COMPANIES ARE OUT OF COUNTRY

      just like our us companies are up …………half to artificial inflation of the numbers from qe1 and qe2 , but most of their sales are overseas and government acquisition

      also as a side note…………..depreciation of the us dollar agaisnt the yen has improved their numbers , and with the high probability of qe3 the dollar yen ratio will only improve in their favor

      dont you just love government ?????? / sarc

      Report Post » Psychosis  

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