Japan's market took yet another beating today when Goldman Sachs lowered its growth forecast for the country's annual gross domestic product. Goldman had previously estimated growth of 1.3%, but has dropped that number down to 0.7% in light of the recent disasters and a slowdown across the country as power cuts and rolling black outs hamper business of all kinds.
In Asia Monday Japan's Nikkei 225 Index fell 0.6% to 9,479 and in Hong Kong the Hang Seng Index lost 0.4% to close at 23,068, China's Shanghai Composite Index added 0.2% to end the day at 2,984.
More bad news in Japan sparked profit taking today. Radioactive iodine has seeped into Tokyo's drinking water and new reports show that the surrounding seawater is also radioactive, which could lead to a ban on seafood if it doesn't dissipate. Today another series of earthquakes rocked Japan, including a 6.6 magnitude tremble.
Japan's Nikkei 225 Index advanced 2.7% on Friday, ending a turbulent week at 9,207. In Hong Kong the Hang Seng Index inched up 0.1% to 22,300 and in China the Shanghai Composite Index rose 0.3% to close at 2,907.
As people in Japan's earthquake-tsunami disaster zone deal with the additional danger of radiation from damaged nuclear reactors, nations across the globe are taking the crisis as a sign that it's time to get more aggressive in their development of safer nuclear power plants.
Japan's markets got a slight reprieve today as the yen slipped a bit after hitting a record high yesterday. While the lower value helped exporters recover from severe losses earlier in the trading session, the country has a long way to go before confidence in its economy's resilience is restored.