JAPAN / CHINA: Japan and other Asian stocks are down after Citigroup cut 52,000 jobs in a dramatic move to save itself

Record ID: 462884

  • Title: JAPAN / CHINA: Japan and other Asian stocks are down after Citigroup cut 52,000 jobs in a dramatic move to save itself
  • Date: 18th November 2008
  • Summary: (BN02) TOKYO, JAPAN (NOVEMBER 18, 2008) (REUTERS) PEOPLE WALKING ON THE STREET IN FRONT OF TOKYO STOCK EXCHANGE BUILDING EXTERIOR OF TOKYO STOCK EXCHANGE BUILDING ELECTRONIC BOARD CIRCLING ELECTRONIC BOARD VARIOUS OF TOKYO STOCK EXCHANGE OFFICIALS WORKING CIRCLING ELECTRONIC BOARD PEOPLE WATCHING THE BOARD
  • Embargoed: 3rd December 2008 12:00
  • Keywords:
  • Topics: Finance
  • Reuters ID: LVAEHWKBVSUMSV7ZECJE98R9OJQY
  • Story Text: Japan's Nikkei average slipped 2.3 percent on Tuesday (November 18), dragged down by worries about a weakening global economy that battered exporters such as Sony, though bargain-hunting prevented further slides.
    Bank shares slipped on growing worries about the financial sector after Citigroup's announcement that it was cutting 52,000 jobs, the second-largest corporate lay-off plan in history.
    Softbank fell 15 percent to become the biggest drag on the Nikkei 225 after a newspaper said Japan's No.3 wireless carrier faces an increasing risk of a $776 million special loss from a financial derivative.
    The benchmark Nikkei shed 194.17 points to 8,328.41.
    Japan's Economy Minister Kaoru Yosano said the economy may not grow in the fiscal year starting next April, issuing one of the bleakest comments yet on the impact of the economic downturn.

    "I can hardly be confident at this point of time that (the next fiscal year's growth rate) will be positive," Yosano told a news conference.
    His comment comes a day after government data showed Japan's economy has slipped into recession, confirming that the global financial crisis has sabotaged growth in yet another major economy.
    In Hong Kong, shares opened 1.7 percent lower, tracking the downdraft in regional markets with issues beaten down across the board by worries over a retracted global recession.
    But by 0752GMT the benchmark Hang Seng Index was down 5.45 percent at 12792.39.
    HSBC laid off an additional 500 staff in Asia after announcing 1,100 job cuts in September.
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