Long Term Unemployment Rises in Japan

Chandrasekhar Atreya
18 Aug, 2010
New York City

Nikkei in Japan rises tracking gains in the U.S. Mitsubishi led consortium to supply metro cars to Cairo, Egypt. Fire at Osaka refinery forces shut down of two units. Unemployed in Japan averaged 3.49 million a month in the quarter to June, with 1.2 million without work for more than a year.

[R]5:00 PM Tokyo, Japan – Stocks in Japan rise tracking gains in New York trading. Mitsubishi led consortium sign a contract to supply metro cars to Cairo. Fire at Osaka refinery forces shut down of two units. Unemployed in Japan averaged 3.49 million a month in the quarter to June, with 1.18 million without work for more than a year.[/R]

Tokyo stocks traded higher Wednesday, rising for the first time in three trading days on the sharp gains in New York.

The Nikkei 225 Stock Average gained 0.86% or 78.86 to close at 9,240.54. The broader Topix also climbed 1% to 835.23 after dropping in six of the past seven weeks.

In the Nikkei 225 Stock Average 177 stocks gained, 33 dropped while 15 stayed unchanged.

Unemployment averaged 3.49 million a month in the quarter to June, with 1.18 million out of work for more than a year, the Internal Affairs Ministry said Tuesday. The number of jobless for more than a year rose by 210,000 from a year earlier, climbing for the seventh straight quarter.

The most commonly cited reason for unemployment was not finding the right kind of work, cited by 1.02 million, while 440,000 said they could not find any job.

Mitsubishi Corp said Wednesday that a consortium of the trading house, Toshiba Corp and the rolling stock maker Kinki Sharyo Co landed a contract to supply metro cars for a subway system in the city of Cairo.

The deal worth 18 billion yen with Mitsubishi serving as the lead contractor was concluded with the National Authority of Tunnels, which operates under Egypt’s Ministry of Transport. The order is for supply of 88 train cars in 2012-13. Over the past four decades, the three companies have delivered 1,400 such cars to Egypt.

Postal and Financial Services Minister Shozaburo Jimi discussed Japan’s economy with U.S. Federal Reserve Chairman Ben Bernanke and Lael Brainard, a senior Treasury official in Washington Tuesday.

Precision motor maker Nidec Corp signed a deal to buy U.S. firm Emerson Electric Co’s motors and control division in another overseas acquisition as the company broadens its product portfolio and geographical reach.

The Kyoto-based Nidec said Wednesday that it agreed to buy Emerson’s industrial, air-conditioning and home appliance motor businesses in an all cash deal valued between 60billion yen to 70 billion yen.

Japan’s largest refiner by capacity, JX Nippon Oil & Energy Corp said Wednesday that it shut down a 17,000 barrel-a-day reformer and two desulfurizers at the 115,000 barrel-a-day Osaka Refinery in Western Japan due to a fire.

The cause of the fire and restart schedule are not clear, but delivery hasn’t been affected due to large inventories, the spokesman said.

Prime Minister Naoto Kan plans to issue new stimulus measures as soon as early September to salvage the economy battered by a rising yen and sliding share prices. Kan will soon hold talks with some of his top officials and also meet the central bank Governor to discuss the yen’s rapid appreciation.

“After we get a clear grasp of the situation, we will then decide on appropriate steps as well as how and when to implement them,” he told reporters while speaking to them Tuesday.

Japan’s composite index of coincident economic indicators rose 0.1 point from May to 101.3 in June, according to revised data released Wednesday by the Cabinet Office. The index of leading indicators, a barometer of economic conditions several months down the road, climbed 0.4 point to 99.

Japan and China will hold their third economy-related ministers’ meeting in Beijing on August 28, the Japanese Foreign Ministry said Wednesday. The series of meetings was started in December 2007 to discuss economic issues between the two nations.

Nippon Sheet Glass Co said Tuesday it will boost production capacity for energy-saving glass in China to meet growing demand for the product.

The company plans to invest approximately 4.5 billion yen at a joint venture in Tianjin to install equipment that sheaths ordinary window glass with an energy efficient coating. The investment will also cover the addition of a second line of production for building use glass at the plant. These upgrades are scheduled for completion by March 2012.

Gainers & Losers

Nisshin Steel led the gainers in the Nikkei index with a gain of 4.86% to 151 yen followed by Inpex Corp 4.62% to 396,000 yen and JX HD 3.98% to 470 yen.

Shiseido Co Ltd led the decliners in the index with a fall of 1.53% to 1,869 yen followed by Shinsei Bank Ltd 1.35% to 73 yen and NSK Ltd 1.34% to 514 yen.