Japan ETF in Focus as Government Says Economy in ‘Severe Condition’ | ETF Trends

Traders will keep a close eye on iShares MSCI Japan Index Fund (NYSEArca: EWJ) in U.S. trading Friday after the government said the economy is in trouble after the massive earthquake and tsunami.

The Nikkei Stock Average closed up by nearly 2% in Japan as stocks rose despite an aftershock Thursday that triggered tsunami warnings. The Japan exchange traded fund (ETF) ended Thursday lower as its share price fell back into single digits.

Japan’s economy is in a “severe condition” and a quick recovery isn’t expected following a triple disaster triggered by the March 11 earthquake, the government said, according to Reuters.

The $7 billion iShares MSCI Japan was down nearly 13% for the month ended April 7, according to Morningstar.

iShares MSCI Japan