Japan CPI Rises 0.3%; Nissan in JV in India

Mayank Mehta, Chandrasekhar Atreya and Darlington Musarurwa
30 Apr, 2010
New York City

Japan

[R]5:00 AM New York, 7:00 PM Tokyo – Japan’s unemployment rate at 5% in March and family spending advanced 4.4% in the month. The consumer price index rises 0.3% in March. Ashok Leyland Nissan venture in India plans to roll out light commercial vehicle in 2011.[/R]

Japanese stocks rebounded from the largest one-day drop in three months on improved earnings and outlook on the world economy.

The yen fell against the higher yielding currencies the Australian dollar and the euro as more evidence emerged that Greece may agree to budget cuts needed to win a potential bailout of $159 billion.

Bank of Korea’s currency swap agreement with the Bank of Japan that was increased to $20 billion during the global financial crisis will revert to the initial $3 billion today said the two central banks.

The swap facility had contributed significantly to fight financial turmoil for stability in the regional financial markets.

Fujitsu Ltd, Japan’s biggest computer services provider forecast better than expected full year earnings citing demand for cloud computing and other services.

The company is trying to move away from unprofitable hardware business to service oriented business.

The Nikkei 225 Index in Tokyo closed higher 132.61 or 1.21% to 11,057.40 and of the stocks in Nikkei 225 Stock Average, 176 increased, 37 declined and 12 was unchanged.

In Tokyo trading Nikkei 225 Stock Average edged up 1.2% or 132.61 to 11,057.40, and the broader Topix Index jumped 1% to 987.04.

In the first section of the Tokyo Stock Exchange 10 billion shares worth 760 billion yen were traded and in the second section 204 million shares valued at 3.7 billion yen changed hands.

Of the Nikkei 225 index stocks, 176 advanced, 37 fell, and 12 were unchanged. Mitsubishi Logistics Corporation led gainers in the index shares with a rise of 7.8% followed by in Oki Electric Industry Company jumping 7.6%.

Unemployment Rate 5% in March

The Statistics Bureau reported today that the number of employed persons fell 0.6% or 350,000 to 62.1 million in March from a year earlier.

The number of unemployed persons rose 4.5% or 150,000 to 3.5 million in the period, while the unemployment rate was 5%.

Family Spending Rises 4.4% in March

The Statistics Bureau also reported that the monthly consumption expenditures average per household rose 3% in nominal terms and 4.4% in real terms to 319,991 yen in March from a year earlier.

Monthly income average per household fell 0.9% in nominal terms but increased 0.4% in real terms to 439,410 yen.

Also average of consumption expenditures jumped 2.3% in nominal terms and gained 3.6% in real terms to 352,552 yen in the review period from the comparable year ago period.

Nikkei Movers

Chubu Electric Power Company, Incorporated led the decliners in the Nikkei 225 Stock Average with a loss of 6.7% followed by Sumitomo Metal Industries, Ltd 2.2%, OKUMA Corporation 2.1%, Honda Motor Co., Ltd 2.1% and The Sumitomo Trust and Banking Company, Limited 2.0%.

Mitsubishi Logistics Corporation led gainers in the Nikkei 225 Stock Average with a rise of 7.8% followed by Oki Electric Industry Company, Limited 7.6%, Nisshinbo Holdings Inc 7.4% and in Central Japan Railway Company 6.6%.

Other Movers

Canon Inc rose 1.8% to 4,355.00 after the camera maker said worldwide growth hit 20% in the 2009 full year. Among the company''s global markets, only China maintained a rapid growth.

NEC Corporation added 2.3% to 312.00 yen after the maker of personal computers posted higher than expected net income for the year ended March.

Nissan Motor Co Ltd added 2.3% to 823.00 yen. The Ashok Leyland-Nissan joint venture in India will start rolling out its light commercial vehicles out of the Hosur facility near Bangalore as well as from Renault-Nissan''s car plant in Tamil Nadu.