The global economic crisis hit Japan

Japan has been considered to prevent further spread of the turmoil in the global economy's strong fortress, but it also revealed Monday a new vulnerability, the country's largest bank announced to raise more capital, the yen exchange rate is near 10-year high, while the stock market is Fell to a 26-year lows not seen. Two pedestrians pass by Mitsubishi UFJ Securities, a battalion of the Office of Mitsubishi UFJ Financial Group (Mitsubishi UFJ Financial Group) said Monday it will raise as much as possible 990,000,000,000 yen (about 10,700,000,000 U.S. dollars) of capital. And just two weeks ago, the Bank of Japan has the highest market value of 9,000,000,000 U.S. dollars of investment was a Morgan Stanley (Morgan Stanley) 21% of the shares. Also Monday, Prime Minister of Japan Taro Aso (Taro Aso) to the cabinet issued an order to prepare its scheduled release later this week a package of economic stimulus plan, drawn up more measures to strengthen Japan's financial system and the stability of Japan Market. Nikkei down 6.4 percent Monday to close at 7162.90 points, a record in October 1982 to its lowest level since. Nikkei so far this year, half of the value of the losses. Hong Kong stock market fell 12.7 percent Monday, after European stock markets have begun to fall sharply, as fears that Asia may not be an exception in a global economic recession. The Dow Jones Industrial Average index closed at 8175.77 points Monday, hit on April 1, 2003 the lowest level since closing point. As the yen against the U.S. dollar continued to rise, up nearly 13 points higher, Japan's situation is even worse. New York currency trading Monday, 1 U.S. dollar against 93.58 yen, down from 94.6 yen last Friday of the month cumulative decline of 12%. The yen strengthened a serious blow to Japan's major exporters because their products in overseas markets become more expensive. Prior to the United States, Europe and emerging markets, the country's economic slowdown has undermined the performance of these exporters. To a certain extent, in response to Japan's appeal for help, the G-7 finance ministers Monday issued an urgent statement, warning investors not to push the yen exchange rate too high. They said the yen's exchange rate in the near future "excess volatility" on the global economy and financial system posed a threat. Due to the global economic slowdown fears linger, the European Central Bank President Jean-Claude Trichet (Jean-Claude Trichet) hinted that the bank might next week lower its key interest rate. Although Japan's economy again by the turmoil began in the United States triggered the financial crisis, Japan's economy, but some of the inherent problems exacerbated the extent of the problem, including the Japanese banking sector was unusually high risk of stock market exposure as well as Japan is heavily dependent on Exports to promote economic growth, even if these problems in Japan has emerged from the 1990 recession after the long-term remains. Nikkei at the end of 1989 had risen to a record high of 38915.87 points level, after Japanese stock and real estate market bubble began to rupture, led to the Japanese economy for more than 10 years of stagnation. After the first few years of this century, painful and slow to adjust, the Japanese banking industry has finally cleared its mountain of bad debts, while Japanese companies have restructured to regain vitality. These efforts have on-hand Japanese companies have considerable financial resources, Japan Ministry of Finance (Finance Ministry) to provide data, about 1,100,000 Japanese enterprises to bear the interest-bearing debt from 10 years ago, more than 600 1,000,000,000,000 yen fell to 4,550,000 100,000,000 yen. According to "Nihon Keizai Shimbun" (Nikkei) to a study, as of March this year, Japan more than 40% of listed companies amounted to zero net debt, that is in the hands of their cash than its debt burden. Some companies use the funds on hand to conduct large-scale overseas acquisitions. Last month, Nomura Holdings (Nomura Holdings Inc.) Acquisition of Lehman Brothers (Lehman Brothers Holdings Inc.) In Asia and Europe, part of the business. Mitsubishi UFJ Financial Group and in addition to the purchase of Morgan Stanley's 21% stake, but also to spend about 3.5 billion U.S. dollars in the United States that it acquired Union BanCal Corp. That the banks do not yet have a 35% stake. The current market turmoil has prompted economists revised their projections. With the major overseas markets for export growth appears to slow the Japanese economy entered a recession has begun, in the second quarter of negative growth. Most economists now expect Japan's economy will also be in the third quarter of negative growth. Under normal circumstances, two consecutive quarters of negative growth means the economy into a recession.