News / Asia

World's Major Economies to Discuss Japan Intervention

Japanese Finance Minister Yoshihiko Noda (C) speaks to reporters announcing that finance ministers from the G7 group of top economies and central bankers will hold teleconference talks, at his office in Tokyo on March 17, 2011.
Japanese Finance Minister Yoshihiko Noda (C) speaks to reporters announcing that finance ministers from the G7 group of top economies and central bankers will hold teleconference talks, at his office in Tokyo on March 17, 2011.
TEXT SIZE - +

Japan's stock market retreated again Thursday, and officials from the world's leading economies agreed to meet about the effect the earthquake, tsunami and nuclear crisis is having on the fragile global economic recovery.

Investors sent Tokyo's Nikkei index down more than 1.4 percent, but economic officials expressed more concern that the Japanese yen currency hit a post-World War II record against the dollar before falling back somewhat. The yen has gained significant value since the natural disasters and concerns about radiation leaks at the country's Fukushima nuclear power plants.

Analysts said some currency traders perceive the yen as a safe haven investment during Japan's turmoil. Others say the currency's value has risen as Japanese companies repatriate their cash to help pay for the reconstruction effort that will be needed in the months ahead. The higher yen could create problems for the recovery of the world's third biggest economy by making Japanese exports more expensive for the rest of the world.

Japanese Finance Minister Yoshihiko Noda said finance leaders from seven of the world's biggest economies will meet by phone early Friday to discuss the disaster and whether their central banks should intervene to stem the increase in the yen's value.

The Nikkei had rallied on Wednesday, surging 5.7 percent to recover almost a third of the ground lost earlier this week. But Asian stocks resumed their downward track Thursday, with Hong Kong's Hang Seng market falling more than 1.8 percent and exchanges in other countries also down or flat. However, European stock indexes advanced 1 percent or more in midday trading and U.S. stocks increased in early trading.

The yen surged to 76.52 to the dollar before falling back to more than 79. A strong yen is a big concern for major Japanese exporters like Toyota Motor, the world's largest automaker. Bloomberg financial news says for each yen the currency appreciates against the dollar, Toyota's earnings are cut by $372 million.

The Japanese central bank on Thursday again pumped more money - $76 billion - into the country's economy to try to stem concerns about the country's finances. That increases the total for the week to $421 billion.

Reuters reports the damage from the disasters could go as high as $200 billion, including the costs of rebuilding and disruptions to business and factory output.

Some information for this report was provided by AP, AFP and Reuters.

You May Like

Analysts Warn of Regional Proxy Conflict in Afghanistan

Analysts warn if Kabul’s neighbors do not start to cooperate, competing desires for influence could deteriorate into a bloody proxy war in the country More

Saudi Intelligence Chief Replaced

Bandar bin Sultan came under criticism for supporting al Qaida, prompting King Abdallah to wrest Syria operations away from him in February, handing them to Interior Minister Prince Mohammed bin Nayef More

Poetry Magazine editor Don Share talks what makes a good poem with VOA's David Byrd

What makes a good poem? And is poetry as viable an art form as it once was? To find out, VOA's David Byrd spoke to Don Share, the editor of Poetry Magazine. More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid