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Huge foreign sell orders the biggest since the world stockmarket crash of October 1987—sent Japan's blue-chip shares skidding.However susceptible Japan's financial markets have been to the bursting of America's credit bubble, plenty of analysts argue that the country is insulated from the economic consequences.
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The two nations accounted for nearly all the record $40.8bn of net foreign selling.
The won had plunged 30% against the greenback this year through Friday, as massive foreign sell-offs in the stock market led to a spike in conversions of won into the dollar (See "Korea Looks After Number Won").
A nightmare scenario would occur if real rates increased from foreign selling and simultaneous deflation (negative inflation) in the U.S.
The second point the dollar bulls will point out, and it is a good point, is that if foreign selling of dollar assets are so significant, then why are stocks and bonds doing so well?
Indian investors are likely to pick up any shares that foreign banks sell.
Dumping means that the foreign producers sell steel for less than its cost.
As a nation's finances deteriorate, foreign investors sell their bonds, putting upward pressure on interest rates.
Step 3: Don't let foreign firms sell in your market unless they agree to give your domestic firms technology.
Of the trade settled in yuan in the first quarter of this year, 94% was foreign goods sold to China, not Chinese goods sold abroad.
Foreign automakers sold about 177,000 vehicles in Japan last fiscal year, a small fraction of the 4.7 million cars sold in Japan and the 5.6 million cars the country exported.
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