Japan Corporate Investment Decline 1.2%

123jump.com Staff
03 Dec, 2007
New York City

Stocks in Japan fell on the first day of trading after corporate investment fell 1.2% in the third quarter. Nikkei 225 index closed down 0.3% or 51.7 to close at 15,628. November auto sales in Japan increased 3.9% to 296,854 units. Separately taxi fares in Tokyo and Kanagawa between 8% and 10% for the first time in ten years. European auto makers raised prices in Japan on stronger euro. Sky Perfect JSAT Group increased 6% and led the gainers in the Nikkei 225 index.

[R]4:00AM New York, 6:00PM Tokyo - Japan’s corporate investment fell 1.2% in third quarter.[/R]

Stocks in Japan declined as exporters slumped on a strengthening yen and on a government report that showed capital spending fell in the third quarter.

In Tokyo trading Nikkei 225 slid 0.33% or 51.7 to 15,628.97, while the broader Topix Index gained 0.28 to 1,532.16.

In the first section of the Tokyo Stock Exchange 9.9 billion shares worth 1.2 trillion yen were traded and 289.5 million shares valued at 5.570 billion yen changed hands in the second section.

Of the Nikkei 225 stocks 100 gained, 114 declined and 11 were unchanged. 35 stocks gained 1%. Sky Perfect led gainers with a rise of 5.73%. Financial stocks gained as well on speculation that the U.S. Federal Reserve will cut the key rate. Mitsubishi UFJ Financial Group rose 2.6% and Mizuho Financial Group firmed 2.18%.

Japan’s Ministry of Finance’s financial statement statistics for corporations for the fiscal second quarter ending in September that profits at the 24,000 companies surveyed fell the most in five years by 0.7% to 132,936 billion yen. While profits in the non-manufacturing and construction sector increased 1.5% to 76,074 million yen and 3% to 4,829 billion yen, profits in the manufacturing sector slumped 3.16% to 56 billion yen.

According to the Ministry of Finance statistics, corporate investment in the third quarter fell 1.2% to 139 billion yen. Investment in manufacturing however firmed 6.1% to 52.5 billion yen, while for the non-manufacturing sector slid 5.1% to 86 billion yen.

Third quarter sales firmed 2.0% to 3.7 trillion yen. Sales in the manufacturing sector climbed 7.6% to 1.1 trillion yen, while those in the non-manufacturing sector tumbled 0.5% to 2.5 trillion yen.

Japan’s Ministry of Health, Labour and Welfare said today in the October provisional report on Monthly Labor Survey average monthly cash earnings per regular employee remained unchanged from the previous year at 275,441 yen, and contractual cash earnings fell 0.3% to 270,629 yen. In addition, cash earnings slumped 0.3% to 250,668 yen.

The preliminary October labor survey showed that the real wage index fell 0.1%. Also in the month, the average monthly total hours worked fell 0.6% to 152.2 hours. Similarly, non-scheduled hours worked in manufacturing dropped 0.6% to 17 hours. However, the seasonally adjusted figure increased by 0.7%.

The Labor Ministry also reported that regular employees in October were increased by 1.7% to 44.57 million from a year earlier. Full time employees increased 1% to 32.95 million and part-time employees leapt 4.0% to 11.6 million.

Of the Nikkei 225 index shares, Sky Perfect JSAT Group led advancers with a gain of 5.73%, followed by rises of 4.51% in Japan Steel Work, 4.31% in Osaka Gas Company Limited, 4.20% in Fujikura Limited, and 4.09% in Meiji Seika.

Sekusui House led decliners in Nikkei 225 stocks with a slump of 5.23%, followed by losses in Tokai Carbon Company of 4.78%, in Mitsubishi Paper of 4.38%, in Nippon Meat Pack of 3.40%, and in Mitsui O.S.K. Lines of 3.39%.

Exporters also tumbled as the yen strengthened from 111.24 last week 110.57 at the close of trade. Canon Incorporated declined 0.86%, Casio Computer retreated 1.56% and Toyota Motor Corporation edged down 0.80%.

NTT DoCoMo and South Korean mobile company KT Freetel Company have agreed to jointly invest $200 million in Malaysian wireless carrier U Mobile Sdn. The two companies are targeting a 16.5% stake each in the company. The investment is set to help U Mobile in its 3G business and roaming services.