Japan's Industrial Output Drops, Jobless Rate and Retail Sales Rise

Arun Goswami
29 Mar, 2024
Mumbai

Stock markets in Japan and Asia lacked momentum as most markets in the region were closed for a public holiday. 

In thin trading, the benchmark indexes in Tokyo advanced as investors digested the latest batch of economic releases. 

The jobless rate inched up to 2.6% in February, and the job-to-applicants ratio moderated to 1.26%, indicating tight but easing labor market conditions. 

The unemployment rate increased from 2.4% in January, and the measure of unemployment rose to its highest level since last September, the labor ministry reported Friday. 

In February, the number of unemployed increased by 120,000 to 1.82 million, and payrolls rose by 220,000 to 67.83 million, the Ministry of Internal Affairs and Communications said Friday. 

On the inflation front, consumer price inflation in Tokyo eased in March but stayed above the Bank of Japan's target level. 

Consumer prices excluding fresh food rose 2.4% in March, rising at a slower pace than 2.5% in February, according to a separate report released by the ministry. 

The non-seasonally adjusted labor force participation edged up to 62.8% from 62.1% in the corresponding month a year ago. 

Japan's industrial output declined 0.1% from the previous month and dropped 3.4% from a year ago in February, the Ministry of Economy, Trade, and Industry reported Friday. 

Industrial production improved from a decline of 6.7% in January, the sharpest fall since May 2020, due to the continued weakness in vehicle and machinery production. 

Japan's retail sales rose 4.6% from a year ago to 12.9 trillion yen and expanded from the downwardly revised increase of 2.4% in January, said the ministry in a separate report. 

Commercial sales increased 3.3% to 47.8 trillion yen, and wholesale sales rose 2.9% to 34.9 trillion yen from a year ago, respectively. 

The Nikkei 225 stock average added 0.4% to 40,345.11, and the Topix gained 0.6% to 40,345.11. 

Tech stocks were among the leading gainers, and Tokyo Electron, Screen Holdings, Disco Corp., and Advantest rose between 1.5% and 4%. 

SoftBank declined 0.9%, and Uniqlo parent Fast Retailing jumped 0.9%. 

Vehicle makers traded mixed, and Toyota Motor Edged fell a fraction, but Honda Motor and Nissan Motor rose about 2%.