Gloom over the Japanese economy grew today as the decline in exports to a slowing US economy slashed the nation's industrial output 3.9 per cent in January from the previous month.
The Japan's Ministry of Economy, Trade and Industry downgraded its output assessment to flat from a moderate rising trend, saying it would look closely at figures in the months ahead for a clearer indication.
The data differed sharply from the government's forecast for January made last month of a 0.7-per cent increase, surprising analysts and markets and driving down both the yen and share prices.
"The US economic slowdown is dealing a blow to Japan's exports to Asia indirectly while shipments to the United States took a direct beating," said Akihiko Suzuki, senior economist at Sanwa Research Institute and Consulting.
Much of the intra-Asian trade in electronics products and components ends up in the US as finished goods.
Japan's benchmark stock index, the Nikkei 225, fell 176.32 or 1.35 per cent to close at 12,883.54 after having fallen as low as 12,784.17 earlier in the day - its lowest level in 15 years.
AFP