Japan Industrial Production Plunges 10%

123jump.com Staff
27 Feb, 2009
New York City

Industrial production in Japan drops 10% in January. The sharp decline in production was led by the slowdown in machinery, automobiles and other industrial products manufacturing. The production plunged 31% from a year ago. Japan Lower House of parliament passed 88.5 trillion yen budget.

[R]5:00AM New York, 7:00PM Tokyo- Japan industrial production drops 10% in January.[/R]

Japan stock indexes rose 1.5% despite industrial production tumbled 10% in January. Stocks edged higher on the speculation that government may use public funds to purchase stocks and prop equity market.

Japan’s Lower House also passed a massive 88.55 trillion yen budget.

In Tokyo trading Nikkei 225 index rose 1.5% or 110.49 to 7,468.42, rising 1.7% for the week, but falling 5.7% in February, and the broader Topix Index gained 1.2% or 9.21 to 751.74, soaring 1.7% in the week and dropping 5.3% in February.

In the first section of the Tokyo Stock Exchange 8 billion shares worth 510 billion yen were traded and in the second section 79 million shares valued at 820 million yen changed hands.

Of the Nikkei 225 index stocks, 163 increased, 54 declined, and 8 were unchanged. Seven & I Holdings led gainers in the index shares with a rise of 10.7% followed by Furukawa Electric increasing 9.8%.

Industrial Production Drops 10% in January

Japan’s Ministry of Economy, Trade and Industry reported today that the country’s industrial production index dropped 10% in January from the previous month and fell 30.8% from the same period a year ago.

Industries that contributed to the decline in the production index were in the order of transport equipment, electronic parts and devices, and general machinery.

The METI said the survey expects production to decline 8.3% in February and to rise 2.8% in March.

The report notes that shipments in January fell 11.4% from the previous month and shed 31.6% from a year ago dragged by a decline in transport equipment, general machinery, electronic parts and devices, in that order.

Inventory in the review period declined 2% from December and rose 2.8% from a year earlier.

Industries that mainly contributed to the decrease are electronic parts and devices, information and communication electronics equipment, and chemicals, respectively.

Japan Passes Record 88.55 trillion Budget for 2009

Nikkei News reported today that the country’s Lower House of parliament passed 88.55 trillion yen budget for the next fiscal year.

Separately the online publication said finance minister Kaoru Yosano has urged the Liberal Democratic Party to explore measures to underpin share prices including the use of public funds to buy stocks.

Gainers & Losers

Seven & I Holdings led gainers in the Nikkei 225 index shares with a rise of 10.7% followed by increases in Furukawa Electric of 9.8%, in Tokai Marine HD of 8.1%, in JFE Holdings of 7.5%, and Yahoo Japan Corp. of 6.8%.

CSK Holdings led decliners in the Nikkei 225 index shares with a decline of 31.4% followed by losses in Asahi Glass Co. of 5.7%, in Daiichi Sankyo of 5.3%, in Nippon Sheet Glass of 5.3%, and Advantest Corp. of 3.5%.