To intervention, turmoil in Japan’s markets: Tokyo ready

uncertainty in the worldwide financial markets due to bad news from the iPhone manufacturer Apple and the American industry in Japan. After the violent turmoil in the country currency Yen the prices on the Tokyo stock exchange started on Friday with high losses into the new trading year. Japan’s government agreed in case of doubt, to interventions in the currency.

The Japanese stock market index Nikkei the 225 leading values fell by 452,8 points, or 2.3 per cent, and went with 19.561,9 points from the trade. In the meantime, the Index had fallen by more than 770 points, berappeln again something. Due to national holidays was Friday on the Japanese stock exchange, the first trading day of the year.

the dealer will see the Tokyo stock exchange in a downward spiral, after heavy losses on Thursday on Wall Street. Lowered sales targets for the iPhone manufacturer Apple and unsettling sentiment data from the American industry had sent to the stock exchanges in the United States, steep descent. Added to this was a sharp value of the Japanese currency Yen climbed on Thursday against the Dollar to its highest level in 10 months of increase.

Japan’s government on alert

In uncertain times, investors often look to the Japanese Yen as a “safe haven”. For a Dollar, only 104,70 Yen had to be temporarily peeling. Although it was on Friday at around 108 Yen, but that is still significantly less than in the autumn. For the Japanese economy, the strong Yen is a Problem, because it makes Japan’s important exports more expensive. In addition, the rates were rashes at times so high that experts of a so-called “Flash-languages Crash”. This course rashes will be exacerbated by automatic trading systems. Commerzbank expert Ulrich light man spoke of an unusual intensity and of “market failure”.

The turbulence in the foreign exchange market enables Japan’s government on alert. The Ministry of Finance and the Central Bank is ready to intervene in order to prevent large swings in the night to Thursday, said the Vice Finance Minister for international Affairs Masatsugu Asakawa on Friday after a crisis meeting of the government and monetary authorities. “We can’t tolerate speculative deflections or movements which are not justified by fundamentals,” said Asakawa.

A burden on the domestic economy through an increase in value of the Yen would be Japan’s government is extremely inconvenient. For some time it wants to increase the VAT to the high state to curb the debt. Due to a weak demand in the domestic head of government of Shinzo Abe had to postpone raising but twice already. Japan’s economy has been going relatively well, but that was mainly due to a strong balance sheet in foreign trade.