Japan Warns on Strong Yen as Growth Outlook Downgraded: Economy

Japan had lowered the assessment for its economy. It is the first downgrade since the global credit crunch in 2009, which fueled the world's third largest economy in the world which its economy decreased during the last quarter. 

Stocks Rally

Japan's stocks rallied even after the Japanese Government announced the contraction of the economy's assessment since last few months. The Nikkei 225 stock average was up to 1.8% with the MSCI index gained 2.4 %. The Japanese yen was changed a little to 77.61 per dollar, approximately 3%.

Falling Sales

The retail sales in Japan fell more than the number the economists forecasts last July and the industrial productions slumped as the governments subsidies for car purchases decreased. The Japanese parliament may limit the fiscal stimulus as the Japan's expansion restrained or stopped by the weakness in global demand on the appreciating currency. On the 14th of February the Japanese Central Bank  had expanded the long term asset purchase program.

On Asia

The Singaporean retail sales fell to 2.9 percent on a year, a second month of declines. In the Euro zone inflation reached to 2.6% this year. The U.S CPI is to forecast to be increased to 0.6 in August more than last previous month. According to 85 economists surveyed by Bloomberg. Retail sales rose  in August as the American consumers overcame a lack of jobs and weak paid wages. Japan's gross domestic product grew to the yearly 0.7 percent in the second quarter after a 5.3 expansion in the first 3 months of the year. Today's report adds weight made by BNP Paribas and JP Morgan Japan. There a huge demand for the Japanese government for the work to reconstruct the areas that was devastated from the natural disasters occurred last year. The government had lowered its expenditure and industrial production with the addition of that it is lowered its economy assessment.