Skip to: Content
Skip to: Site Navigation
Skip to: Search

October 12, 2008 4:02:27 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Japan Rebuilds Economic Walls

Posted Apr 30, 08 1:30 PM CDT in Business,  World 

(Newser) – Once, Japan was one of the world’s most closed economies, with near-impregnable barriers guarding against foreign investors. It's moving back in that direction, the Wall Street Journal reports. Companies are buying stakes in each other to complicate international takeover bids, and resurrecting the “poison pill” strategy America pioneered in the 1980s. The government, meanwhile, is barring foreign investment in key industries.

The fortress mentality had eased off in the 1990s, allowing foreigners to buy into iconic companies like Nissan—but it’s returning, because many companies are juicy takeover targets. Stocks are trading at about 15 times earnings, down from 50 five years ago. “You can't overstate the paranoia about takeovers here,” said one researcher. “It's an implication that they've done a poor job creating value.”

Source Wall Street Journal

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Asian Markets Plunging

    Oct 9, 08 8:08 PM CDT
    Asian Markets Plunging Asia's markets are following on the heels of the Dow's plunge today, MarketWatch reports. All of them are dropping precipitously at the start of Friday's trading, with Japan's benchmark Nikkei index down more than 10%. Elsewhere, South Korea's was down nearly 9%, Hong Kong's 8%, and Australia's 6.7%. The bad opening follows the Dow's drop of 679 points to 8,579.19, its first close below 9,000 since 2003.
    More »

  • Pass the Bailout, Or Else We'll Become Japan

    Oct 2, 08 8:27 AM CDT
    Pass the Bailout, Or Else We'll Become Japan Watching the House vote down the bailout package this week, Nicholas Kristof recalled a bad memory: Japanese politicians doing the same thing during the financial crisis of the 1990s. The New York Times columnist, who was then based in Tokyo, watched as a desire to punish "corrupt, profligate, and unsympathetic" bankers ushered in a decade-long decline, from which Japan has still not fully recovered.
    More »

  • Japanese PM Resigns

    Sep 1, 08 11:42 AM CDT
    Japanese PM Resigns Yasuo Fukuda has resigned as Japan’s prime minister, the AP reports. Fukuda said he was stepping down to ensure that a special session of parliament to address the economy runs smoothly. Fukuda, whose approval rating is at 29% after less than a year in office, has presided over a split parliament, which has caused bitter legislative gridlock for most of his term.
    More »

  • Opposition Finally Backs New Chief for Bank of Japan

    Apr 9, 08 2:45 AM CDT
    Opposition Finally Backs New Chief for Bank of Japan The Democratic Party of Japan has accepted a new central banker just in time for the crucial meeting of G7 finance leaders in Washington on Friday, reports the International Business Times. The top spot has been vacant since March 19, leaving the bank vulnerable during an unsteady economic time. Masaaki Shirakawa is expected to be formally nominated today as Bank of Japan chief. More »

  • Japan's Inflation Surges

    Mar 28, 08 8:58 AM CDT
    Japan's Inflation Surges A double whammy of rising inflation and unemployment has experts worried that Japan’s economy—the world’s second largest—is fast losing steam, reports the Wall Street Journal. Inflation in February rose 1%, its fastest spike in a decade, and household spending stalled in the face of rising food and oil prices. More »

A pedestrian uses his mobile phone beside an electronic stock market board in Tokyo, Friday, March 7, 2008.   (AP Photo/Katsumi Kasahara)
An overhead view of Tokyo.   (Shutterstock)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 1)

Tags

Japan  • foreign investment  • Japanese economy  • Nikkei 225 Stock Average


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other World Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »