Skip to comments.Japan's trade deficit balloons
Posted on 08/22/2012 11:17:10 PM PDT by bruinbirdman
Japanese stock markets fell their furthest in two weeks after problems in Europe and China caused the countrys trade deficit to balloon to the highest level on record.
The Nikkei 225 dropped 0.3pc to 9,131.74, the biggest slide since August 10, after the trade deficit rose to Y517bn (£4bn) almost twice the level forecast.
The shock figures were blamed on the fall in demand as a result of Europes sovereign-debt crisis and a slowdown in China, which dragged down exports while higher oil prices boosted the cost of imports.
Faltering global growth and the strengthening yen threaten to undermine Japans recovery from the devastating earthquake and tsunami in 2011, adding to pressure for stimulus measures to support the worlds third-biggest economy.
Shipments to the European Union fell by 25pc in July from a year earlier, the biggest decline since October 2009, while those to China slipped 12pc. The trade deficit was the biggest for any July since records began in 1979.
Japan needs more monetary stimulus to sustain the recovery, Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management, told Bloomberg. Sentiment among manufacturers is deteriorating globally, triggered by Europes fiscal problems, and thats adversely affecting Asian economies.
The data added
(Excerpt) Read more at telegraph.co.uk ...
“Japan needs more monetary stimulus to sustain the recovery” - no need for any structural change in our economy. What hasn’t worked in the past will work now...or someday...I hope.
Gee, you wish somebody in America would take a look at Japan’s failed policies and not do them! Bernanke are you listening?