Managers warn of Japan GDP hit but impact less than Kobe

clock

Fund managers warn Japan could take a short term hit to GDP following last week's earthquake and tsunami, but they are less concerned about the longer-term impact on the country's fragile economic recovery.

The catastrophic events on Friday hit Japan's stockmarket with the Nikkei 225 falling 6.2% on its first day of trading in the aftermath, despite the Bank of Japan announcing a cash injection of $183bn to bolster the economy. Fund managers and economists have spent the weekend trying to weigh up the implications of the disaster on Japan's economy which is struggling to recovery to pre-financial crisis levels. The Japanese economy grew 3.9% last year, its fastest performance in two decades. But output is still well below levels set before the global financial crisis and GDP actually con...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Bank of England meets expectations with 25 basis point rate cut to 4.75%

Bank of England meets expectations with 25 basis point rate cut to 4.75%

'Continued progress' on disinflation

Valeria Martinez
clock 07 November 2024 • 2 min read
'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read
Advisers urged not to let clients 'act too soon' ahead of Budget

Advisers urged not to let clients 'act too soon' ahead of Budget

Communication is about ‘staying calm and keeping clients focused’

Isabel Baxter
clock 22 October 2024 • 5 min read