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‘Tokyo investors eye forex, Dubai crisis’

TOKYO: Tokyo investors will next week watch dollar-yen exchange rates and the effects on markets of Dubai’s debt payment suspension, hoping stocks have hit bottom and will recover, analysts said Friday. Dubai rattled markets when it said Wednesday it would ask creditors of its Dubai World conglomerate for a debt moratorium of at least six months. The dollar meanwhile slumped to a 14-year low against the yen on Thursday and remained at the low levels Friday, prompting fears that a further drop could hurt a fragile recovery in Japan, the world’s second largest economy. The yen’s sharp rise has stirred anxiety among government and business leaders, with Finance Minister Hirohisa Fujii saying it is harmful to Japan’s export-led economy and he was watching currencies closely. Over the week to November 27, the benchmark Nikkei-225 index lost 416.16 points, or 4.38 percent, to 9,081.52. It dropped 3.2 percent on Friday. The broader Topix index of all first section shares over the trading week fell 27.19 points, or 3.24 percent, to 811.01. afp

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