Japan’s economy unexpectedly slipped back into recession as housing and business investment dropped following a sales tax hike, hobbling its ability to help drive the global recovery.
The world’s third-largest economy contracted at a 1.6% annual pace in the July-September quarter, the government said Monday, confounding expectations that it would rebound after a big drop the quarter before.
The news cast a pall over financial markets: Japan’s share benchmark fell 3%, and many others in Asia also declined. Shares were lower in early trading in Europe and Dow Jones and S&P futures were off 0.5%, suggesting a dismal start for the week on Wall Street. Read more here.