Market Report Japanese Recession Likely

ZHANG:
Asia investors waded back into battered stock markets after a grizzly week on Friday. But just under the surface signs of a global economic slowdown affecting Asia.

Japan's economy shrank for the first time in a year in the second quarter as it struggles with high raw material costs. Analysts only expect a moderate rebound in the third quarter and say a recession looms for the world's second largest economy.

China's latest annual industrial output data fell to a six-year low. Many blame the temporary closure of factories to clean the air for the Olympics. But economists also said the data reflected a softening of demand for Chinese exports.

Around the region banking shares rebounded on hopes of a possible takeover of struggling U.S. bank Lehman Brothers. But many financial shares pared gains toward the end of trading. Investors say the sale of Lehman Brothers will still not remove worries over the health of the U.S. financial sector.

Seoul shares were a bright spot, rebounding after an anxious week. South Korean investors are closely watching for signs of a leadership struggle in reclusive North Korea, after widespread talk leader Kim Jong-Il suffered a stroke.

Category:

News & Politics

Tags:

• Ntd
• NTDTV
• News
• Japanese
• Recession
• Asia
• investors
• global
• economic
• recession
• Olympics
• U.S.
• bank
• Lehman Brothers

[jonie1515]

because if American's can not buy what is going to happen to Japan? and China? This is only the beginning my friends it was all for told for many many years this was coming.