Japan

Chandrasekhar Atreya
28 Dec, 2010
New York City

Tokyo benchmark index declined following weakness in the Chinese stock markets and a stronger yen. Industrial production rises in November for the first time in six months, while unemployment rate stays unchanged. Consumer price index dropped for the 21st month in a row in November.

[R]5:00 PM Tokyo, Japan – Tokyo benchmark index declined following weakness in the Chinese stock markets and a stronger yen. Industrial production rises in November for the first time in six months, while unemployment rate stays unchanged. Consumer price index dropped for the 21st month in a row in November.[/R]

Stocks in Tokyo ended the day lower following weakness in the Chinese stock markets and the yen’s rise against the dollar with. Trading volume was thin.

The Nikkei 225 Stock Average fell 0.61% or 63.36 to close at 10,292.63 and the broader Topix slid 0.2% to 902.83.

Industrial production index in November rose seasonally adjusted 1% from the October to 91.8, registering the first increase in six months, according to preliminary data released by the Ministry of Economy, Trade and Industry.

According to the ministry’s forecasts the index will rise 3.4% in December and 3.7% in January.

The unemployment rate in November remained unchanged from October at 5.1%, the Ministry of Internal Affairs and Communications said today.

The number of unemployed people in Japan totaled 3.18 million, down 130,000 from a year ago. Of these, the number of people asked to leave due to bankruptcy and other reasons declined 250,000, while those who left their jobs voluntarily increased by 20,000.

The country’s core consumer price index dropped 0.5% from a year earlier in November, a sign that prices are still in decline, according to data from the Ministry of Internal Affairs and Communications released today. The decline was the 21st monthly fall in a row.

Preliminary data shows that the country’s domestic automobile production will fall short of 10 million units for a second year in a row in 2010.

Domestic auto production was 8.87 million vehicles from January to November, according to preliminary data released by the Japan Automobile Manufacturers Association. Production slowed since autumn after expiry of government subsidy for fuel-efficient vehicles.

Sony Corp said Monday it plans to double its production of image sensors used in digital cameras and smartphones with a capital spend of 100 billion yen at its Nagasaki Prefecture in the next year.

The amount includes the cost of acquiring Toshiba’s chip facility in Nagasaki, which the two companies announced last Friday without giving details of the deal.

Mizuho Financial group Inc said it expects to exceed the capital ratio requirements as specified by revised Basel norms without resorting to additional stock offerings.

“We won’t need a share sale as an emergency measure to boost our capital,” CEO Takashi Tsukamoto said in an interview this month. He also said that the bank plans to meet the capital requirements by steadily building profits, managing risk assets and reducing costs to buffer the effects of possible economic slowdowns.

Dai-ichi Life Insurance Co, which owns now 30% of Tower Australia, plans to buy the remaining stake for 100 billion yen to take full control of the business, said Yasuhiro Kunii, an investor relations official of the company at Tokyo today.

Stock Movers

Inpex Corp retreated 1.73% to 482,000 yen while Mitsubishi Corp, Japan’s largest commodity trader, declined 0.58% to 2,210 yen.

Tokyo Electron Ltd, a semiconductor equipment maker and exporter, declined 0.96% to 5,170 yen. Casio Computer Co Ltd, another exporter, fell 1.78% to 661 yen.

Mizuho Financial Group Inc gained 1.96% to 156 yen after its CEO said the bank will exceed capital requirements as specified by Basel norms.