Third quarter growth for Japan was stunted more than anticipated causing less than satisfactory results for stocks and exchange traded funds (ETFs). A downward revision in business’s capital investment fogged up the outlook for the world’s second largest economy, reports Associated Press. During the July-September quarter, growth was at a 1.5% annual pace, worse than the anticipated 2.6% estimate.
Part of the problem may be due to the U.S. economic slowdown and credit slump. Another reason may be due to higher raw materials prices. iShares MSCI Japan Index (EWJ) has underperformed all other Asian markets, only up 0.1% year-to-date. Likewise, iShares S&P/Topix 150 Index (ITF) has reflected the sluggish growth with no gains or losses year-to-date.
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