Investors in the Japanese markets had been hoping that the flip of the calendar to 2010 would bring new hope for the country’s stalled economy, following a bitterly disappointing 2009 that saw Japan lag global economies by a considerable margin. But only two days in to the year, health problems of the finance minister have created yet another obstacle, setting the stage for a potentially devastating reshuffling of roles. [click to continue…]
As the recovery has gained momentum in much of the Asian Pacific, Japan’s economy has struggled to find its footing, becoming a laggard in a region that has largely propelled itself out of the recession and established itself as one of the leaders of the new global economy. Australia has begun raising interest rates once again, while equity markets in Hong Kong, Singapore, and South Korea have seen a noticeable bounce lift them out of crisis. Yet Japan remains mired in an economic mess that threatens to result in another “lost decade” of stagnant growth and elevated unemployment. [click to continue…]