TOKYO: Japan's
economy grew by 0.3 percent in the three months to June from the
previous quarter, the government said Monday, the country's fourth
consecutive rising quarter but at a slower pace than before.
The
data from the Cabinet Office came in significantly weaker than market
expectations for a 0.7 percent increase, as exports slowed due to weaker
global growth amid the eurozone crisis.
It also marked a sharp contrast from a brisk 1.3 percent increase in the January-March period.
The
government has taken a series of steps to spur growth, including
offering incentives for fuel-efficient vehicle purchases and measures to
rebuild the northern region hit by last year's deadly earthquake and
tsunami.
But Japan's economy has faced headwinds caused by
Europe's debt crisis, which has slowed growth worldwide, while a high
yen has made Japanese exports less competitive in overseas markets.
Last
week, the government downgraded its views on consumer sentiment and
machinery orders, while the Bank of Japan effectively cut its
assessments on exports and factory production.
TOKYO: Japan's
finance minister said Tuesday financial markets were "very disappointed"
over the failure of a US Congress "supercommittee" to reach a deal on
reining in ballooning budget deficits.
"I can see that the
markets are very disappointed," Finance Minister Jun Azumi told a
regular news conference, referring to an overnight plunge on Wall
Street.
The blue-chip Dow Jones Industrial Average fell 2.10 per
cent to 11,548.14 while the broad-based S&P 500 index was down 1.85
per cent to 1,193.11.
"I think this could have an impact on the Tokyo markets," Azumi said early Tuesday.
The
benchmark Nikkei 225 index at the Tokyo Stock Exchange, which closed at
its lowest level since March 2009 on Monday, opened down 1.01 per cent.
The
index then recovered some lost ground as the dollar rose above 77.00
yen from 76.92 yen in New York late Monday. A strong yen hurts exporters
by reducing their repatriated revenue.
The index was hovering around the break-even point in mid-morning trade.
Azumi
added markets had doubts over the ability of politicians in the United
States and Europe to deal with deep-seated economic problems.
"Japan's
political situation is more stable when it is compared with the rest of
the world," he said, noting the success of Japanese lawmakers Monday in
passing a 12.1-trillion-yen (US$157 billion) extra budget through
parliament.
The third supplementary budget this year is aimed at
boosting post-quake reconstruction and giving a fillip to an economy hit
by slow global growth and a strong yen.
A US Congress
"supercommittee" announced Monday it had failed to reach a debt deal,
after angry partisan battles over the best way to revive the sluggish
economy.
It confirmed widespread expectations that the 12-member
committee would fail in its mission to cut US deficits by US$1.2
trillion over 10 years amid political feuds over tax hikes on the rich
and cuts to social spending.
Global financial markets are already rattled by Europe's debt crisis and weighed down by the stuttering US economy.
