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.

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

At International AIDS Conference One Goal, Many Paths

The 12,000 delegates attending 20th International AIDS Conference in Melbourne have vastly different visions about how to eradicate disease More

Disasters May Doom Malaysia’s Flag Carrier

Even before loss of two jets loaded with passengers on international flights, company had been operating in red for three years, accumulating deficit of $1.3 billion More

Afghan Presidential Vote Audit Continues Despite Glitches

Process has been marred by walkouts by representatives of two competing candidates, Abdullah Abdullah and Ashraf Ghani 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.
Nature of Space Exploration Enters New Agei
X
Elizabeth Lee
July 20, 2014 2:36 AM
Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.
Video

Video Chicago’s Argonne Lab Developing Battery of the Future

In 2012, the U.S. Department of Energy’s Office of Science awarded a $120 million grant to a new technology center focused on battery development - headquartered at Argonne National Laboratory in suburban Chicago, Illinois. As VOA’s Kane Farabaugh reports, there scientists are making the next technological breakthroughs in energy storage.
Video

Video In NW Pakistan, Army Offensive Causes Massive Number of Displaced

Pakistan’s army offensive in North Waziristan has resulted in the large-scale displacement of the local population. VOA's Ayaz Gul reports from northwest Pakistan where authorities say around 80 percent of the estimated 1 million internally displaced persons [IDPs] have settled in Bannu district, while much of the remaining 20 percent are scattered in nearby cities.
Video

Video Kurdish Peshmerga Force Secures Kirkuk, Its Oil

The Kurdistan regional government has sent its Peshmerga troops into the adjacent province of Kirkuk to drive out insurgents, and to secure the area's rich oil fields. By doing this, the regional government has added a fourth province to the three it officially controls. The oil also provides revenue that could make an independent Kurdistan economically strong. VOA’s Jeffrey Young went out with the Peshmerga and filed this report.
Video

Video Malaysia Reeling: Second Air Disaster in Four Months

Malaysia is reeling from the second air disaster in four months involving the country’s flag carrier. Flight 340 vanished in March and despite an extensive search, no debris has been found. And on Thursday, Flight 17, likely hit by a surface-to-air missile, came apart over eastern Ukraine. The two incidents together have left more than 500 people dead. VOA Correspondent Steve Herman reports from Kuala Lumpur.
Video

Video Diplomatic Crisis Grows Over MH17 Plane Crash

The Malaysia Airlines crash in eastern Ukraine is drawing reaction from leaders around the world. With suspicions growing that a surface-to-air missile shot down the aircraft, there are increasing tensions in the international community over who is to blame. Henry Ridgwell reports for VOA from London.
Video

Video Undocumented Immigrants Face Perilous Journey to US, No Guarantees

Every day, hundreds of undocumented immigrants from Central America attempt the arduous journey through Mexico and turn themselves over to U.S. border patrol -- with the hope that they will not be turned away. But the dangers they face along the way are many, and as Ramon Taylor reports from the Rio Grande Valley in Texas, their fate rests on more than just the reception they get at the US border.
Video

Video Scientists Create Blackest Material Ever

Of all the black things in the universe only the infamous "black holes" are so black that not even a tiny amount of light can bounce back. But scientists have managed to create material almost as black, and it has enormous potential use. VOA’s George Putic has more.
Video

Video Fog Collector Transforming Maasai Water Harvesting in Kenya

The Maasai people of Kenya are known for their cattle-herding, nomadic lifestyle. But it's an existence that depends on access to adequate water for their herds and flocks. Lenny Ruvaga reports for VOA, on a "fog collector."

AppleAndroid