japan-suffers-massive-stock-selloff

Japan suffers massive stock sell-off

A combination of factors is hurting the Japanese stockmarket. Even the conservative banking sector is suffering, threatening further international expansion.

Dan Slater

October 08, 2008

Most observers were taken aback on Tuesday when JapanÆs benchmark Nikkei 225 index crashed through the 10,000 point mark, losing 5% at one stage before recovering to end with a 3% loss at 10,156 points - its lowest level since 2004. And this was after it had already fallen 4.3% on Monday.

Indeed, while the political landscape has been chaotic, with the unexpected resignation of former Prime Minister Shinzo Abe over the summer, economically things looked more stable. The banking system û which is a source of panic in the US and Europe û is relatively unaffected by subprime exposure and high leverage. And the investments by Japanese banking giant Mitsubishi UFJ Financial Group MUFG...

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