Nikkei Climbs 1.7%; Population Decline Accelerated in Japan

Chandrasekhar Atreya
04 Jan, 2011
New York City

Tokyo stocks hit a fresh 7

[R]5:00 PM Tokyo, Japan – Tokyo stocks hit a fresh 7½-month high intra-day after the dollar strengthened against the yen. Premier Kan calls for a national debate on raising the sales tax limit of 5% to bring down the nation’s debt. Population of Japan decline increased to 123,000 in 2010.[/R]

Stocks in Tokyo opened higher on the first trading day of 2011, rising about 110 points from Thursday closing at mid-10,300 level. It ended the first day at a 7½-month high boosted by strong global manufacturing data and a weaker yen against the dollar.

The Nikkei 225 Stock Average gained 1.65% or 169.18 to 10,398.10. The broader Topix advanced 1.59% to 913.09. Of the 225 names in the benchmark index 217 gained and 5 traded down and 3 were unchanged.

The yen closed the day at 82.17 yen to a dollar and 109.64 yen to a euro in Tokyo.

Prime Minister Naoto Kan said today at his first news conference that he will make a final decision by June on whether Japan will be part of the Trans-Pacific Partnership, a proposed multilateral free trade pact.

He also called for a national debate on raising the 5% sales tax to curb the burgeoning debt of the country besides touching on regional security issues.

“Its obvious to anybody’s eyes that we must debate the social security system and the consumption tax and other taxes to support it. Now’s the time and I invite the opposition parties to join discussions,” Kan said during the nationally televised press conference today.

Japan’s population decline continued in 2010, with the number of deaths exceeding births by more than 100,000 for the first time, according to a Health Ministry estimate.

The population declined began in 2005 and reached a record 123,000 in 2010 from the roughly 50,000 fall in 2009.

With the U.S. space shuttles due for retirement this year, Japan will resume its work of re-supplying the International Space Station with its unmanned transporter, giving the country a chance to hone its technical skills.

The Japan Aerospace Exploration Agency and Mitsubishi Heavy Industries Ltd will launch the second H-II Transfer Vehicle, or HTV, from the Tanegashima Space Center in Kagoshima Prefecture on January 20.

Premier Naoto Kan promised to balance free trade and agricultural reform in order to have further trade negotiations, in his New Year’s message released Saturday.

He also pledged to promote talks on economic partnership agreements with European Union, South Korea and Australia besides the Trans-Pacific Partnership Agreement.

The total amount of Bank of Japan notes in circulation at the end of the year will be a record 82.31 trillion yen, up 1.7% from a year ago period, the central bank said on Thursday.

Stock Movers

Stocks of exporting companies gained the most as the yen weakened against the dollar.

Nikon Corp rose 6.7% to 1,747 yen and Nissan Motor Co added 4.27% to 806 yen. Sony Corp rose 1.61% to 2,974 yen while Panasonic Corp gained 1.65% to 1,172 yen.

Teijin Ltd added 2.02% to 354 yen while Asahi Kasei Corp hit a new high of 539 yen by rising 1.7%.

Sapporo Holdings Ltd dropped 0.54% to 366 yen and Nippon Express Co fell 1.09% to 362 yen.

Resona Holdings slipped 0.41% to 485 yen.