Asian Stocks Fall on U.S. Slump, Oil; Toyota, Matsushita Slide

[shugah]

Asian Stocks Fall on U.S. Slump, Oil; Toyota, Matsushita Slide

Jan. 23 (Bloomberg) -- Asian stocks dropped, ending a two- day rally, after oil prices jumped and U.S. shares fell by the most since 2003 on disappointing profit reports. Toyota Motor Corp. and Matsushita Electric Industrial Co. paced the decline.

Earnings ``expectations have been toned down'' after shortfalls in the U.S. and Europe, said Koji Uchida, who helps manage $47 billion at Mitsubishi UFJ Asset Management Co. in Tokyo. ``That's going to help keep the market weak.''

~snip~
Toyota, the world's largest automaker by value, fell 1.8 percent to 5,880 yen. The company had 60 percent of its sales outside Japan last fiscal year. Matsushita, the world's biggest maker of plasma televisions, lost 3.7 percent to 2,365 yen.

http://www.bloomberg.com/apps/news?pid=10000080&sid=azy4973dfu_0&refer=asia

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1. Japan's companies will fall further with boycott due to continued whaling

[ChairmanAgnostic]

2. no, that will be tiny compared to the structural problems they have.

The savings crisis, the banking crisis, the real estate bubble, the non-performing loans, their growing energy costs far outweigh any boycott about whaling. There is simply no comparison, not when they face real trouble from China.

Japan's economy is huge and could give two shits about whales or the resulting boycott. Even the meat imports from the US will have no adverse impact. Other suppliers will fill the gap, especially NZ and Oz.
If the whale boycott causes a million in trade loss, remember that they have trillions in economic activity. It is like pouring a cup of water on the ground during a hurricane, and blaming that for a flood.

[cliss]

3. In my opinion, the #1 reason

for Japan's impending fall: oil. Or the lack of it. Japan is desperately dependent on imported oil.

Japan holds the #2 spot as the biggest economy (US is #1). They have very few natural resources. They import almost everything. The reason for their success has been a well-trained, effective labor force.

So what happens next? If oil goes to $100 per barrel, Japan is going to have a hard time maintaining its current economy. They've got massive problems; banking problems, social problems, you name it.