bank of japan

The Japanese economy is "under strong downward pressure" in the wake of the damage caused by the earthquake and tsunami, the Bank of Japan (BOJ) says.

Intervention by the G7 and Bank of Japan to stabilise the yen following the Japanese earthquake means the easy money had now been made trading the yen, says Insight's Dale Thomas.

VIEW FROM JAPAN

Rathbones' David Coombs is adding Japanese stocks to his portfolio in the view its economy will rebound quickly from the aftermath of last week's devastating earthquake and tsunami.

Nomura predicts the devastating earthquake and tsunami in Japan will cut between 0.5% and 1% off the country's GDP next quarter.

Fund managers warn Japan could take a short-term hit to GDP following last week's earthquake and tsunami, but they are less concerned about the longer-term impact on the country's fragile economic recovery.

Japan's stock market lost almost 7% after its first full day of trading following the earthquake and tsunami that struck the country on Friday.

The Bank of Japan has kept interest rates static at between 0% and 0.1% in a bid to boost the nation's economy and rein in inflation.

The Japanese yen hit a new 15-year high against the US dollar today as prime minister Naoto Kan hinted at further currency intervention.

The Bank of Japan has cut interest rates to virtually zero in an effort to revive the ailing economy.