Credit Fears Sink Asian Markets

Interest rate hikes unlikely

(NEWSER) - The Bank of Japan pumped $5.1 billion into the Japanese financial system today as the global credit crunch continued to ripple through the Asian markets, Bloomberg reports. Adding to the jitters, Japan's growth is slowing more markedly than economists predicted; the world's second-largest economy expanded by only 0.5% in the last quarter, compared to 3.2% the previous quarter. More»

Fear of brake on US consumer spending

(NEWSER) - Asian stocks are falling again, reflecting worry the growing credit crisis in the US will puncture the economy and slash consumer spending. Mizuho Financial Group, Japan's second largest lender, dropped to a two-week low after an increase in home foreclosures in the US —and many other Asian financial stocks and indices dipped, reports Bloomberg. More»

Global downturn, strong yen reverse earlier expectations

(NEWSER) - Sony announced today that it would go down to its first annual loss in 14 years, after having forecast just months ago that it would turn a profit. The Japanese electronics giant said it expected to lose $1.7 billion, the result of declining demand from the global recession. The BBC reports that Sony has also been hit hard by the strong yen: 80% of its sales come from overseas, and currently the Japanese currency is its highest against the dollar in more than 13 years. More»

Even Prius can't overcome flagging demand, soaring yen

(NEWSER) - Toyota will post a loss for the first time in its history, the victim of plummeting sales and multi-year highs in the value of the yen, the company warned today. The Japanese automaker, which has enjoyed a reputation for profits even in bad times, announced that it would suspend executive bonuses and rejigger its dividend payout. "Unfortunately, I cannot see now where the bottom will be," said Toyota's CEO, who predicted a $1.67 billion loss. More»

(AP) - Sony is slashing 8,000 jobs, or 4%of its global work force, aiming to cut costs by $1.1 billion a year as a global downturn and stronger yen batters profits at the Japanese electronics maker. Sony, which has 185,000 employees worldwide, said today it will complete the layoffs by the end of March 2010. Some 80% of Sony's sales come from overseas. More»