quick look at the hour's top stories. china's financial authorities are taking desperate measures to prevent a market plunge as private investors take the biggest hits. people in japan's southern prefecture of okinawa are preparing for gael force winds as a typhoon is set to move through the region. and lawmakers in a southern

u.s. state have voted to remove a controversial flag from the state house grounds following the brutal murder of nine people. chinese stocks reversed losses and rallied thursday pulling many of the other markets in the asia pacific region higher. gene otani from the business team has been following the markets in china and elsewhere in the region. gene, a busy two days. what can you tell sinusus? >> very much a rebound after the decline the day before. authorities in beijing reacted wednesday by announcing a new range of measures to bring things under control and it looks like investors were convinced the shanghai rallied. here are the results. it closed up 5.76%. closing at 3,709. bargain hunters charged the market with orders. the index kept climbing in the afternoon session eventually leading to the strong performance.

for more ramin mellegard spoke to someone who gave us details on what's behind the recent volatility. >> i think there are two parts. the first part here is we have a huge saving issue in china. it reached 30%. so the second point is the most of the investors including households, they invested in property market one year ago. and because the government does concern about their property market bubble they controlled the property investment. since then the investors, they shifted the investment from property market to exchange of market. but it's not sustainable. so the problem here is sustainability, i think. >> so with the government and the people's bank of china,

they've obviously taken a lot of measures to combat this but it's not working. what's your take on that? >> well i think due to some efforts such like supporting measures is necessary, but it's not, you know, enough. why i say so because the problem here is not about the shortage of liquidity. the real problem here is the lack of confidence. the government needs to do more efforts to up confidence from investors i think. >> so if this continues to drop say, another 10%, 15%, what other measures can the government realistically take? >> i think the drop you know it's possible from now on the government need to announce to make it clear about a road map to reaffirm the state

enterprises and also the social security system. otherwise the volatility of the stock exchange market could be very, very huge. yeah. >> and basically following on from that the ripple effect for asian economies, everyone's also looking at that. what's your view on how that may play out? >> yes. we're facing double crisis. and the secondne is the shanghai stock exchange and bubble burst. so i think we need to prepare to manage the risk. first is the market risk. the second is the political risk. and finally i want to emphasize the social risk. because social risk makes chinese society go into turmoil. it could be you know very sad

tragedy for the region. >> now, we're going to have some gdp data out of china next week i believe. >> yes. >> surely these numbers will play into that. how do you think the government will have to deal with that? >> well i think chinese economy is still in a nervous situation because much of the driving force is very weak. especially the fixed assessment. so i think the government need to do more to stimulate private consumption. but they postponed the secret service systems refirm. so this is a very very you know delicate situation for chinese economy. and now for a check on other markets. investors in tokyo took some relief from the movements in shanghai and helped the nikkei

reverse course. the index was down more than 3% at one point but ended the day up at .6%. the topix finished down 0.16%. market watchers predict more fluctuations in shanghai and that's keeping investors on edge. hong kong shares also rebounded after plunging more than 5% yesterday. the hang seng rose 3.7%. in other markets in the asia pacific region seoul's kospi snapped a losing streak and ended up about 0.6%. sydney ended the day almost flat reversing earlier losses. better than expected job data supported the recovery. indonesian shares down for a fourth straight session declining. here's a look at some other business stories we're following.

managers at japanese factories are plowing more money back into machinery. they increased spending on orders and made more than $7.5 billion. up 0.6% in yen terms since april. trade officials from japan and the u.s. have met for another round of transpacific partnership talks. they're believed to be discussing the amount of rice that japan imports as well as u.s. tariffs on japanese cars and auto parts. the gel gatdelegates are aiming to narrow differences between a ministerial meeting later this month. >>officials at china's national bureau of statistics say the producer price index in june fell 4.8% from a year earlier. it's declined by more than 4% for more than six months in a row. officials also say the consumer price index rose 1.4% but it's still well below the

government's inflation target of 3% for the year. japanese food producers are seeing their whole market shrink as the population dwindles. so some are looking for customers in other countries. firms in the western prefecture of shimane are setting their sights on the united states and they're hoping to capitalize on a healthy trend. nhk world's sayori yamamoto has more. >> reporter: the city of seattle. they gave a taste of their offering to customers at this supermarket. organic buckwheat noodles and green tea. and traditional japanese confection with no artificial colors or preservatives.

>> it's good. >> the producers we targeting consumers who want to look after their health. the u.s. market for health food is worth more than $80 billion a year and it's growing. producers are tapping into the market with help from their prefectural government. officials are supporting their promotional efforts and helping them craft export strategies. they began promoting exports of health food last year. a company in the prefecture is leading the pack. staff have spent the past decade making steamed fish paste without additives. last year they launched fish chips that made their healthy lineup more distinctive. the chips contain no flour so

they are free of gluten. prefectural officials marked how to kept alive to help producers get a foothold in the united states. >> translator: health food is our way in. it's our greatest strength. if we grab a share of the market before others, the prospects will be very good. >> reporter: officials do all they can to help companies make their exports successful. they put producers in touch with buyers. and they help create fliers. they got a u.s.-based consultant to figure out the information that would attract consumers. officials also helped producers on the ground by sitting in on meetings with potential

customers. like this japanese restaurant in seattle. that presence adds credibility to products and their producers. >> translator: you know, this is the only product of its kind in japan. you definitely won't find the same thing in america. >> i think it shows that the local governments in japan are serious abou introducing products here. >> reporter: shimane officials are making inroads in the united states but they say competition is getting more intense so they now plan to give their health food a distinct identity before other parts of japan try to take a bite of their market. saori yamamoto nhk world,

shimane. that's it for business news. i'll leave you with the markets. people on islands in southern japan are preparing for an onslaught of wind and waves. they're bracing for a typhoon that's to get stronger as it gets closer. meteorologists are tracking typhoon chan-hom as it gets closer. they reported gusts of 120 miles per hour in one city a couple of hours ago. they say gael forced winds could reach 200 miles per hour clom

throughout the country. schools have been closed and flights canceled in okinawa as the islands brace for stormy conditions. jonathan oh is here with the details. >> hello. we are definitely tracking this system. you can tell by how large it is by the amount of cloud cover associated with this system. it's not the only system out there, but certainly the largest out of the three we are tracking. let's take a look at t latest information on chan-hom. it is moving to the northwest at 20 kilometers per hour. packing gusts up to 180. the pressure holding steady at 965. as this system continues to move to the north and west we are expecting it to bring with it some strong winds and a lot of rainfall in the process. for okinawa specifically on friday, rainfall totals can

range up to 300 millimeters during the 24-hour period with gusts close to 200 kilometers per hour. so it will be quite windy in the area. because of the strong winds, we're also looking at the waves bunching up to around 12 meters high. so we're definitely going to have to keep an eye on this system during the day on friday. as we go into the weekend, the system is expected to hit the eastern coast of china. by the time we go into the weekend, also, though it will weaken to a tropical depression level it will still bring with it lots of rainfall. flooding concerns all along the eastern side of china as we go through the weekend. i did mention there were other systems we'll be tracking. we'll looking at linfa which is also going to have impacts through the rest of the day. and nangka. we'll have those details in the next section of weather. the typhoon appears to have snapped an undersea cable connecting guam with the

northern mariana islands. it has dispatched a repair team to the site. it's expected to take two or three days before all systems are restored. the operator says it's working on emergency measures and hopes to resume some services within 24 hours. japanese lawmakers are acting to regulate the use of drones. members of the lower house have passed a bill that would ban the flight of unmanned aircraft over key facilities. a majority of lawmakers supported the bill on thursday and sent it to the upper house. the move was triggered by an incident in april. a drone was discovered on the roof of the prime minister's office. the device was carrying a plastic bottle that contained traces of radioactive cesium. the bill would regulate the flight of drones as well as manned aircraft such as

paragliders and hang gliders. it would prohibit them from flying over important facilities including government buildings and nuclear power plants. violators would face up to a year in prison or a fine up to $4,000. government officials are also seeking to introduce another set of regulations to ban flying drones at night. japanese nuclear regulators are now screening dozens of reactors for restart. they're trying to determine whether the safety measures by operators meet the stricter government requirements introduced two years ago in response to the 2011 fukushima accident. a top regulator says his organization will stick to being careful in the screenings even though the process may be slow. >> translator: some people seem unable to wait even for a little while. but rushing would mean ignoring safety and going back to the times before the new regulations were introduced.

we don't want to do that and we should not let that happen. >> tanaka suggested the regulators would remain careful while working to improve their efficiency. he said they are now looking at 25 reactors at 15 plants. he said the process is taking time but their job is not easy. not a single reactor has been brought back online in the past two years. this includes the ones at sendai nuclear plant in southwestern japan which were the first to pass the screening. some experts have pointed out there are no scientific grounds for limiting a nuclear plant's operation to 40 years in principle. tanaka defended the life span limit saying the united states and france also conduct extremely strict screenings when considering operation over 40 years. he said he does not have enough knowledge to say whether the 40-year limit is scientifically valid but he does not have the knowledge to call forward changing that rule. officials with japan post

are spreading a message of peace to mark an important anniversary. they've released commemorative stamps of nagasaki. it shows the peace statue in the peace park. and they show a clock set to 11:02 a.m. the exact time the bomb exploded. one stamp shows contrasting images of the cathedral. one after the bombing and the other after its reconstruction. >> translator: we hope these stamps help prevent memories of the war from fading. and we hope no other cities will fall victim to a nuclear attack. >> the stamps are in limited supply. officials are only selling 1,100 sheets. each costing around $10.

lawmakers in the u.s. states of south carolina have voted to remove a historical symbol from the state capitol. their decision puts a period on the controversy over the confederate flag that's flown there for half a century. calls for its removal intensified following fatal shootings at a church last month. nhk world's takaha iwabu reports. >> reporter: representatives approved a bill to remove the flag. it's been in front of the legislature since 1962. the confederate flag was originally the battle flag for the army of southern states during the civil war. for many it represents the pride of the south. but for others it remains a symbol of racism. the shootings in charleston last month reignited the debate. nine african-americans were

killed. during a bible study at a historic church. 21-year-old dylann roof is charged with their murders. he had posted a photo online of himself holding the flag along with a white supremacy manifesto. >> take down the flag. take it down. >> that prompted fresh calls for the flag's removal. even the governor who is a republican has joined the call. >> it's time to move the flag from the capitol grounds. >> reporter: president barack obama also supported the idea in his emotional eulogy for the victims. >> for many black and white, that flag was a reminder of systemic oppression.

and racial subjugation. we see that now. >> reporter: this isn't the first time people have tried to take down the flag. in 2000 opponents staged rallies but met strong resistance. legislators then reached a compromise. they removed the flag from the dome atop the city capitol and placed a smaller version on the grounds. the flag remains popular in the southern states. many see it as a nostalgic symbol of tradition and of remembrance for soldiers who sacrificed their lives fighting for the south. >> this is not a flag of hate. it's a flag of heritage. we have a right to our heritage. >> reporter: but this time the call to remove the flag has received wider support.

among citizens and businesses alike. the largest u.s. retailer walmart has announced it will no longer sell confederate themed merchandise. ebay and amazon have followed suit. the bill will now go to the governor who has already said she will sign it. the flag could come down within days. the historic decision will likely encourage broader debate about the controversial emblem of the confederacy. not only in south carolina but also in other states. takaai iwabu, nhk world. >> thanks for bringing us up to speed on that issue. now for more weather, we're having intermittent rain with degrees around 68 degrees fahrenheit. for an update on the world's weather, here's jonathan oh once again. >> hello.

tropical storm linfa continues to move ever so closely to the southern pargs of china. you can see here the clouds are impacting parts and moving close to hong kong. in fact, let me show you the video to give you an idea what this is looking like as this system is bringing stormy weather to southeast china's province. gaels are causing high waves. boats have been to take shelter in harbo because of this. the storm is expected to move slowly toward and over hong kong. linfa is the tenth named storm over the pacific. it made landfall over the weekend. here's the track right now. we are expecting the system to continually move toward the west. packing winds of 108, gusting to 144. pressure is sitting around 975, 980. it is continuing to slide towards the rest. it is expected to weaken into a depression by the weekend. so we are looking out for the rain concerns here. but not only in southern china,

also we're seeing this dragging moisture into northern portions of the philippines. while linfa is up to the north, it's steering moisture into luzon. be prepared for heavy rainfall. there's chan-hom moving into the west. plenty of rain and windy conditions are in place. we do have an 11th named storm. this is nangka. moving at 15 kilometers per hour. packing winds of 162, gusting to 234. still moving to the west/northwest. expected to make a sharp turn towards the north. as we go into the weekend, we'll have to see what impacts it has up to the north, if any, as we go to next week. let's switch gears and talk about something not so tropical. weather in europe. low pressure continuing to steer a lot of moisture into the northern portions of the continent and also toward the east. so we're expecting rain and storms to continually develop

further eastward toward russia. meanwhile back towards the west, 42 degrees in cordoba. hot temperatures into place into the weekend. please take care as we are going to see these unusually warm temperatures. now, final stop in north america. we have an extended system that will be bringing some rain from the ohio river valley down into the southern plains. that's going to bring rain and unstable weather for the eastern side of the united states and also into canada as we go through thursday. hope you have a good day wherever you are. here's your extended outlook.

dealers have tasted sweet success at an auction in central japan. a buyer paid a record 1 million yen or more than $8,000 for a bunch of grapes.

it was the year's first auction of the variety known as ruby roman. bidders gathered at a wholesale market to vie for 31 bunches on offer. >> buyers from a hotel made the record-setting bid. the price of each grape in the bunch they bought breaks down to more than $300. the ruby roman variety has a high sugar content and local officials spent 14 years developing it. >> translator: i want to spread the word about the high quality ingredients here. >> the hotel said it would serve the grapes to guests right away as an after-dinner dessert. very, very lucky guests.

they better savor each one. $300 per grape. i'm james tengan. thanks for watching this edition of "newsline." more to come here on nhk world sotay with us.

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mit withdrawals. a life this request for bailout money to keep the money in the year that to keep the country in the eurozone. the u.n. says more than 4 million people have now left syria on the run from the war. that is the largest number of refugees from any crisis in 25 years. the mass murder of 8000 men and boys 20 years ago will not be recognized as genocide at the u.n..