Japan stocks fall in 7th day

Published:  11 Apr at 6 PM

As reported by the BBC, Japanese stocks dropped for the seventh session in a row as new fears about the health of the global economy initiated a global sell-off.

Shedding 0.8% was the Nikkei 225 index, while Australia's ASX 200 and Hong Kong's Hang Seng also dropped by 1%. Worries about the EU debt crisis and the American economic recovery affected shares of large Asian exporters.

However, European stock markets began on Wednesday with quite modest gains, after Tuesday's big losses. In the EU, investors are closely observing the performance of Spanish bonds.

The yield, which shows how much Spain’s government would be required to pay in order to borrow cash, has been going up towards 6%. This suggests a lack of assurance among global financiers that Spain can put its debts under control.

Spain’s new Prime Minister, Mariano Rajoy, has been attempting to reassure investors that his government is dedicated to containing the deficit. Experts warn that the EU’s debt troubles may prompt further drops for shares this year.

Angus Campbell of Capital Spreads says that 2012 is at the risk of being a replica of 2011, when equity markets started the year strong before sentiment turned quite stark as the EU debt crisis went out of control.