Japan

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.

ON ASSET ALLOCATION

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.

A major earthquake in Japan has rocked markets, which were already fragile yesterday as the FTSE 100 hit a five-week low.

GLG has hired Jeffery Atherton as co-manager for the £1.1bn Japan CoreAlpha and £490m Japan CoreAlpha Equity funds, to work with Stephen Harker and Neil Edwards.

Japan's credit rating has been cut to ‘negative' by Moody's on debt level concerns.

William Littlewood, manager of the £798m Artemis Strategic Assets fund, explains why he is bearish on Japanese bonds but favours Asian currencies, and why he is not buying miners.

Artemis' William Littlewood is running a "significant" short on Japanese government bonds in the view they will be damaged by Japan's high public debt.

China has eclipsed Japan as the world's second largest economy after posting GDP figures of $5.8trn for 2010, beating Japan's $5.474trn.