Yen

Chandrasekhar Atreya
23 Aug, 2010
New York City

The benchmark index Nikkei declined to the low for the year after government did not indicate any steps to stem the recent rise in the yen. Same store sales at supermarkets and convenience stores drop. Itochu Corp helps Indian farmers to shift to organically grown cotton.

[R]5:00 PM Tokyo, Japan – The benchmark index Nikkei declined to the low for the year after government did not indicate any steps to stem the recent rise in the yen. Same store sales at supermarkets and convenience stores drop. Itochu Corp helps Indian farmers to shift to organically grown cotton.[/R]

The benchmark index dropped to the year-to-date low on Monday, after government and central bank gave no indication of steps to stem the recent rise in the yen.

The Nikkei 225 Stock Average fell 0.68% or 62.69 to close at 9,116.69, the lowest level since November last. The broader Topix declined 0.6% to 824.79 with about two stocks dropping for every one that gained in today’s trade.

Of the 225 stocks in Nikkei index, 159 dropped, 48 gained and 18 stayed unchanged.

Domestic same-store sales at supermarkets dropped 1.2% from a year ago in July to 1.05 trillion yen, the twentieth monthly declined in a row, the Japan Chain Stores Association reported Monday.

Sales of summer items grew on a heat wave in late July but not enough to offset the decline resulting from irregular weather early in the month.

Spurred by government-led efforts to boost infrastructure-related exports, general contractors are working to revitalize their overseas businesses.

Taisei Corp and Shimizu Corp have set their sights on overseas contracts for nuclear power stations and other projects and are taking steps to augment resources needed. Takenaka Corp is to establish its first Indian unit in September to tap construction demand.

Second tier builders appear to be focusing on countries where they already have a presence. Maeda Corp secured its first railway construction order in Hong Kong under which the company is to build a tunnel for a rail connection between Hong Kong and Guangzhou by May 2015.

Itochu Corp aims to boost the output of organically grown cotton in India by providing financial aid to small farmers who shun the use of chemicals. Accreditation for organic cotton production requires at least three years of chemical-free cultivation. The trading house will pay a premium of 20% to 30% over regular cotton during the course of transition.

Last year Itochu bought 400 tons of pre-organic cotton from some 900 farmers in North India and plans to buy 500 tons from 1,100 producers this year. With around 4,000 farmers wanting to make the switch to organic, Itochu plans to procure 1,000 tons from 2,000 producers in 2012.

Same store sales at convenience stores operated by 10 firms in Japan rose 0.5% on the year to 670.1 billion yen in July, marking the first rise in 14 months, the Japan Franchise Association reported Friday. Soaring temperatures boosted sales of cold beverages, ice cream and chilled noodles.

The total number of customers increased 2.3% to 1.19 billion, marking the second straight expansion.

Japanese providers of administrative services are expanding their presence in China to take advantage of low labor costs there. Known as business process outsourcers, these firms handle client’s accounting, payroll management, employee welfare, data entry and other activities that fall outside main operations.

According to U.S. research firm Gartner Inc, the Japanese market for business process outsourcing grew by 8% on the year to $15.1 billion or roughly 1.28 trillion yen, in 2009. The market expansion is expected to continue, reaching $17 billion in 2014.

Mitsubishi Plastics Inc has developed a system of integrating a solar-heated hot water tank into commercial-used climate control systems as a way to further enhance energy efficiency.

The company develops and manufactures core components for commercial-use climate control systems that can make use of low-temperature heat sources. By offering the new system, the company hopes to broaden sales of these components and generate revenue of 3 billion yen after three years.

China government will possibly by the year end amend a law to allow foreign tour operators to cater to Chinese traveling abroad, Shao Qiwei, Chairman of China’s National Tourism Administration told his Japanese counterpart, Seiji Maehara Saturday. Maehara, Minister of Land, Infrastructure, Transport and Tourism is in China to attend a meeting of tourism ministers from Japan, China, and South Korea in Hangzhou, Zhejiang Province.

At present only Chinese travel agencies are allowed to serve Chinese travelers.

Fast Retailing Co’s casual wear chain unit Uniqlo Co said Monday it is scheduled to open a new outlet in central Osaka on October 1, which will have the largest floor space of any domestic Uniqlo store.

Its total floor space will be about 2,640 square meters and will have a larger number of items available than the average Uniqlo store.