Us bombshell batters jaded japan

Japan is reeling from the combined effects of the US sub-prime crisis and the credit crunch…

According to the country's Financial Services Agency (FSA), losses related to US sub-prime lending increased by 41% to 850bn yen ($8bn; £4.1bn) at the end of March. Total losses on investments related to risky mortgages was far bigger, amounting to $23bn.

Despite these huge losses, Japan's sub-prime hit is not as severe as in Europe and the US, where companies like Citigroup and UBS have suffered incredible losses. The following lenders were hit the hardest:

- Mizuho Financial Group: 645bn yen ($6.1bn; £3.1bn)

- Sumitomo Mitsui Financial: 93bn yen ($875m; £447m)

- Mitsubishi UFJ Financial: 81bn yen ($763m; £389m)

A spokesperson for Japan’s FSA commented: “As well being affected by America's housing crisis and the global credit crunch, Japanese firms are also affected by the wider economic slowdown in the US, as America is Japan's biggest export market. Economic growth, which started to recover last year after a decade-long downturn, is also being dented by the rising cost of oil and raw materials”.