>> akiko, what does this mean for u.s. consumers? >> reporter: well, it's going to make product that is are made in japan a lot more expensive for americans to buy. you know, you think of a tv that cost 1,200 a month ago, well, now you'll have to pay an extra $100. the overall picture, the yen has surged 10% or more than 10% so that's a huge increase and it's no wonder the exporters out here in japan are struggling so much. >> akiko fujita, live in tokyo, thank you. >>> the stock sell-off is sending shock waves into other markets. not all bad news for consumers. investors were so spooked the price of gold dropped more than $7 an ounce. it's risen consistently for years with investors looking for a safe bet. mortgage rates reached a eight-month low and oil prices dropped more than $5 to 86.63 a barrel. that could mean lower gas prices. >>> so coming up, is it time to sell, sell, sell? well, we'll have some expert advice in about ten minutes and "gma" is live at the new york stock exchange for more insight into what the market drop mea

akiko, what are you hearing from traders?reporter: tanya, asian markets were expected to open down today because of concerns over the s&p downgrading of the u.s. credit rating. that's just what we saw here in tokyo on the nikkei. closed just a short time ago, down more than 2%. that number clearly a sign that that downgrade as well as concerns about the global economy still weighing on investors out here in asia. the numbers fell despite hopes earlier in the day that that statement from g-7 leaders would bring some relief to the markets. those leaders saying that they will take all the necessary measures to support financial stability and growth. the numbers are much better in other parts of asia.a. hong kong's hang seng fell more than 4%. the kospi fell as much as 3%. daniel and tanya? >> how did the japanese government react to the credit downgrade? are they supportive of the u.s. economy? >> reporter: well, japanese finance minister noda has said that the downgrade has not shaken his confidence in u.s. bonds. earlier today

abc's akiko fujita has more. >> reporter: there's no shortage of fans at hiroshi's office.'s two built into his pocket, a pair at every employee's side. chances are you'll always feel a breeze wherever you go. it's just like fanning yourself when it's hot, he tells me, but this is efficient. he's turned a summer staple into big business, creating a line of clothing with built-in electric fans. the constant breeze inside the clothes helps lower the body temperature, creating a personal portable cooling system. he calls it the kuchokufu, japanese for air conditioned clothes. people ask why i wear a jacket when it's hot, he says. i tell them, it's cooler than being naked. case in point, akiko tanaka. her office clocks in at a sweltering 88 degrees. no air conditioning. no sweat. i wear this at home while i do chores, she says. the temperature stays the same wherever i go. the brand isn't limited to jackets. there's the standard white shirt, two fans. a hooded jacket, a cooling cushion, and an air conditioned mattress. my personal favorite? the two-piece, four-fanned anti-beast

. >> and abc's akiko fujita us f us from tokyo. akiko, what can you tell us there? >> reporter: the extended losses from last week. but the general sentiment out there is that things could have been a lot worse. the markets were expected to fall on news of the s&p's downgrade of the credit rating. and we saw the numbers across the board. the hang seng in hong kong fell 3.56%. the index went down nearly 5%. and the kospi in seoul, experienced the biggest decline in nearly two years. there was hope earlier in the day that the news of the g-7 nation's global response to the financial instability, would bring some relief to the markets. but we saw the numbers fall quickly in afternoon trading. one analyst saying that futures players were toughening the waters foror while. but after they realized there weren't specifics that came out of that g-7 talk, they quickly reacted in a fall of the asian markets. >> we know that japan is the second-largest holder of u.s. bonds. what is the government there saying about the u.s. credit downgrade? >> reporter: the japanese finance m

akiko, how did the day end there? >> reporter: well, the good news, asian markets stabilized in afternoon trading but it looked like the markets would follow wall street's lead earlier in the day when markets across the board opened down and then just tumbled. the nikkei average fell below a key number for the first time since the dis in march and down to 6% to 8% at one point. analysts say there were two factors dragging the sell-off today. one is the concern of the global economy weighing on investors, but also a delayed reaction to the u.s. credit rating downgrade. one analyst said investors initially underestimated the impact s&p's move would have on the markets. but we saw that happen on wall street overnight and that sent asian investors into a tailspin. final numbers out here not nearly as bad as what we saw earlier in the day. the nikkei closing down 1.7%. so while mott a good day on asian markets today at least some relief at the end of what was a pretty tense day. tanya? >> atiko, so slight good news there.

. >> and our coverage continues live in tokyo with abc's akiko fujita.ective, that is the lowest since march when the triple disasters here sent markets tumbling. there are increasing concerns the u.s. could be headed back into recession and that's clearly weighing on asian investors. asian markets were down across the board today. the nikkei opened down more than 4% on news of a dismal day on wall street. while the numbers were worse in other parts of asia. at one point the key index for south korea's kospi and hong kong's hang seng inched towards 5%. the big concern out here in tokyo has been the strength of the japanese currency. investors have turned to the yen, which is considered a safe haven as they dumped the dollar over concerns over the u.s. economy and that debt crisis in washington. the yen inched towards a record high against the dollar earlier this week and that forced the government and central bank to intervene yesterday. the move provided teteorary relief but we are seeiei the yen inching back up again today and that's creating a lot of

good morning, akiko. >> reporter: good morning to you, daniel.l.singly concerned about the global economic outlook. but analysts say it is fear that is driving the markets right now. one economist i spoke to today said people need to just take a step back, take a deep breath, and they'll realize the larger economic picture, what he calls the macro economic fundamentals, aren't all that different from what they were three weeks ago. >> akiko, this fear that you're talking about, do you feel that there is a widespread panic in japan right now? >> reporter: well, there's definitely concern and caution but not necessarily panic. we heard from the finance minister earlier today saying he was watching the markets with a sense of urgency. the head of the central bank saying the uncertainty in the global economic outlook posed a major risk for japan. both, of course, watching the rising japanese currency especially closely. the yen trading again today, 78 against the dollar once again, and that climb is comining less than a week after the government interv

. >> akiko fujita, thanks. >>> the number of foreclosures dropped last month to the fewest four years before closure rates dropped last year when allegations surfaced about banks approving foreclosures too quickly. banks are moving slowly since they aren't anxious to seize more houses with so many on their hands. >>> the tough economy is one of the reasons americans are pulling the plug on cable and satellite tv. eight of the nine top providers lost subscribers in the second quarter. another reason, so much streaming video is available online. >>> well, apple's back and forth battle with oil giant exxonmobil over which is the nation's most valuable company has apple back on top this morning. for the first time apple managed to stay number one after the markets closed with a value now of $337 billion. billion with a "b." some experts say it's worth even more than net. >> there's one bright spot in the economy. go, apple. >>> next on this thursday, the fbii sends a team to aruba in te frantic search for a missing american. >>> on top of that a brazen bull on the loose for nearly an hour

akiko fujita with the story.ue the end of the slight yesterday. but today, we saw modest gains wiped out as asian markets fell. the nikkei ended the day .6% down much like hong kong hang seng. the shanghai composite index ended in positive territory so some good news. the latest drop came on the heels of the 5000-point loss on wall street but the selloff sparked by the news of credit rating downgrade in france. that's the driving force in wall street and it wasn't any different in asia where worried investors trade e f bank share and those of exporters. in tokyo, we saw carmakers hit hard, shares of toyota and nissan both went down. to give you a perspective. on the extent of the decline we've seen on the markets, the nikkei has fallen more than 8% in less than a week. >> it sounds like more bad news for exporters who have been copying with the yen's surging value already. so what's next for the exporters? >> reporter: there's no sign of relief just yet, but we did hear the prime minister weigh in saying the gove