Nikkei Rises 0.7%; Japan Debt Estimated at 1,000 Trillion Yen by 2015

Chandrasekhar Atreya
24 Jan, 2011
New York City

Japanese stocks gain for the first time in three days led by automakers. The Japanese Diet starts its 177th session today. Cabinet Office predicts the government debt is likely to touch 1,000 trillion yen by 2015. Toyota Motor sold 7.53 million vehicles in 2010.

[R]5:00 PM Tokyo, Japan – Japanese stocks gain for the first time in three days led by automakers. The Japanese Diet starts its 177th session today. Cabinet Office predicts the government debt is likely to touch 1,000 trillion yen by 2015. Toyota Motor sold 7.53 million vehicles in 2010.[/R]

Tokyo stocks rose for the first time in three days led by automakers and confidence that quarterly earning reports will show improvements.

The Nikkei 225 Stock Average added 0.69% or 70.59 to close at 10,345.11. The broader Topix gained 0.7% to 917.68 after dropping as much as 1%.

The yen closed at 82.84 yen to a dollar and 112.56 yen to a euro in Tokyo today.

The Japanese Diet was convened today for its 177th ordinary session for 150 days till June 22. The emperor will attend the opening ceremony in the afternoon in the Upper House chamber.

Prime Minister Naoto Kan will deliver his policy speech during the plenary sessions of both the houses, while three other government speeches will follow as scheduled.

Mitsubishi Corp said today that its partners in the Donggi-Senoro LNG project in Indonesia have made a final decision to invest in the $2.8 billion project. Mitsubishi has a major stake in the project, while state-run Korea Gas Corp said it has joined as new partner by taking 15% stake and assurance of 700,000 tons of LNG from the project.

The project is scheduled to start production in 2014 and Japan’s JGC Corp is expected to build the plant in Sulawesi Island under an engineering, procurement and construction contract, Mitsubishi Corp said in a statement today.

Toshiba Corp said today it has signed an agreement with state-owned Bulgarian Energy Holding EAD today to discuss and finalize increased cooperation in energy and energy efficiency.

The deal will encompass thermal power, hydro electric power, nuclear-power and solar photovoltaic power generation projects and also ways to increase the efficiency of transmission and distribution through development of smart grids, the companies said in a statement.

The Cabinet Office issued details on Friday its medium and long-term projections of the country’s finances, pointing to a gross government debt exceeding 1,000 trillion yen by fiscal year 2015.

“Regardless of the assumed rate of economic growth, Japan’s central and local government debt, already the highest in the developed world, is forecast to top 1,000 trillion yen in fiscal 2015, up from 833 trillion yen in fiscal 2010,” Tatsuo Hirano, a Cabinet Office senior vice minister told a news conference in Tokyo.

Japan and India have agreed on Saturday to cooperate in urban development in India’s southern area around the city of Chennai.

The agreement calls for development of major roads linking ports and factories, repairing of ageing bridges and construction of industrial parks with less global-warming gas emissions, wherein Japan will offer financial support as well as technical assistance through its engineers.

Toyota Motor Corp reported today its vehicle sales in 2010 gained 8% to 8.42 million units as worldwide demand for vehicles recovered.

The sales includes its luxury Lexus marquee as well as sales from affiliates Daihatsu Motor Co and Hino Motors Ltd. Toyota sales, excluding these two firms, increased 8% to 7.53 million units, the automaker said in a statement.

Stock Movers

Honda Motor rose nearly 3.82% to 3,400 yen after Nomura Holdings raised its rating of the company to ‘buy.’

Elpida Memory Inc, the world’s third-largest computer memory-chip maker, surged 5.1% to yen after Goldman Sachs raised its investment rating.

Yaskawa Electric Corp rose 4.5% after the company returned to profit.

Tokyo Tomin Bank Ltd led the declines among banks with a drop of 6.1% to yen. Bank of Yokohama fell 1.16% to 427 yen, while Chiba Bank Ltd fell 0.38% to 524 yen.

Mitsubishi Corp surged 1.94% to 2,317 yen after saying Korean Gas Ltd confirmed the purchase of LNG from its Indonesian project and a stake in the project.