Japan may be officially out of recession, but regional investors are still cautious, with East Asian markets closing lower in Monday trading.
Economists believe the falls are linked to the latest consumer data from the US, which showed that shoppers there are not yet ready to start spending.
Japan's export-oriented industry relies heavily on US demand.
China's main Shanghai index fell 5.8% to 2,870.63, while Japan's Nikkei 225 fell 328.72 points (3.1%) to 10,268.61.
However, the Nikkei is still up by almost 900 points since mid-July.
Hong Kong's Hang Seng and South Korea's Kospi also fell and the price of US light, sweet crude fell below $66 a barrel - its lowest level this month. It fell $1.73 to $65.78.
"Production [in Japan] is still at a low level, and worries remain that employment conditions will worsen. So we must watch the downside risks," said Japan's economy and fiscal policy minister Yoshimasa Hayashi.
No comments:
Post a Comment