Friday which is officially considered the last trading day of the year, ended with a 11 percent loss for Nikkei(Japan’s Stock Market Index). This is considered by many analyst as a reciprocal of the performance of the market for the entire year. The Market did start with a positive note in February, but it was soon overshadowed by the booming market conditions of other Asian economies, especially that of China. It looks like the Subprime crisis faced in the U.S and Europe did have its impact on Japan. other than these there are other reasons given for the this disappointing result; some of them being Japan’s unwillingness to adopt the ‘anti-takeover policy’ and the failure of the Government to bring about structural change in the economy itself.
In the Past Japan’s stockmarket did good especially in the year 2006 because of expectations of many mergers and acquisitions within the Japan’s companies. The future though looks bleak and analyst feel that the impact of the subprime crisis has not yet come to an end and the ‘bleakness’ could well follow into 2008.
Well when its neighbouring economies are in their boom period, Japan definitely seems to be facing a bad start for the coming year.