Economy

No good news from the Nikkei index



The Japanese stock market is a recovery is still far away: On Thursday, the individual values ??based on 225 Nikkei index fell by 1.7% to 9555 points. As a result, the main other Far Eastern trading centers in Hong Kong, Korea, Shanghai, Taiwan and Singapore came under pressure.

The decline in the Japanese stock market was not only a reaction to the weak performance of the Dow Jones Industrial Average, which had gone the day before because of the worsening U.S. economic outlook by more than 2%. The decline in the Nikkei is due to a much greater extent the ongoing domestic political turmoil in Japan, which took place on Thursday with the no-confidence vote against the incumbent Prime Minister Naoto Kan its climax. Although this was very late on Thursday night and just the confidence he initially may continue to remain in office, the political situation in Japan has stabilized so far: Naoto Kan is still under attack not only from political opponents, but large sections of the population because sharp his inadequate crisis management after the tsunami and earthquake disaster with subsequent incident in Fukushima. For the latter has so far found no reasonable method to contain the radioactivity was emitted.

Analysts do not expect the Japanese stock market could develop positively in the near future. The weak government under Naoto Kan has shown that it is with the two biggest problems that burden Japan is currently overwhelmed namely the nuclear crisis and the huge budget deficit. This situation will probably change in the coming months, very little. In addition, the forecast for the second half of weakening of the upward movement in international stock markets, the development of Japanese equity securities will be influenced negatively.