Japan Weak Sentiment, Economic Indicators

123jump.com Staff
17 Apr, 2009
New York City

Bank of Japan reported that economic conditions in each of nine metrics deteriorated with exports and business fixed investment leading the decline. Cabinet office reported today that the countries confidence index advanced to 28.9 in March from 26.7 the previous month.

[R]5:00AM New York, 7:00PM Tokyo - Japan downgrades economic conditions in nine regions. Consumer confidence increases in March.[/R]

The benchmark stock index increased 1.7% after the consumer confidence increased in March.

In Tokyo trading Nikkei 225 index gained 1.7% or 152.32 to 8,907.58, and the broader Topix Index advanced 1.6% or 13.53 to 845.57.

In the first section of the Tokyo Stock Exchange 25.3 billion shares worth 1.5 trillion yen were traded and in the second section 448 million shares valued at 3.2 billion yen changed hands.

Of the Nikkei 225 index stocks, 159 rose, 58 declined, and 8 were unchanged. JFE Holdings Inc led advancers in the index shares with a rise of 10.6% followed by Nippon Steel increasing 10.5%.

Japan Downgrades Economic Conditions

Bank of Japan reported today that the country’s economic conditions in each of the nine conditions fell markedly.

Exports, business fixed investment, corporate profits and business sentiment dropped significantly.

The report says assessments showed that economic conditions in Chugoku and Shikoku were deteriorating, while those in Tohoku, Hokuriku, Kanto-Koshinetsu, Kinki, and Kyushu-Okinawa were deteriorating significantly.

All the other regions revised their assessments downward, mainly “reflecting the fact that business fixed investment had declined substantially and private consumption had weakened as the employment and income situation became increasingly severe”.

Private consumption was severe in the Hokkaido region, while other regions also saw weakness in private consumption. Compared with the previous assessment of private consumption, Hokkaido, Kinki, Chugoku, and Kyushu-Okinawa maintained their previous assessments and the other five regions revised their assessments
downward.

In addition, Hokuriku maintained its previous assessment on business fixed investment and the other eight regions revised their assessments downward.

Production was considered downward in Tohoku, Hokuriku, Chugoku, Shikoku, and Kyushu-Okinawa and slightly downward in Hokkaido.

Employment was “deteriorating” or ""becoming increasingly severe"" in many regions, mainly since production in the manufacturing sector had declined substantially.

Japan Consumer Sentiment Jumps in March

Japan’s cabinet office reported today that the countries confidence index advanced to 28.9 in March from 26.7 the previous month.

Separately, the Ministry of Industry Trade and Economy noted the demand for services declined 0.8% in February from a month ago.

Japan Power Demand Drops 5.9% in 2008

Nikkei News reported that Federation of Electric Power Companies of Japan said today power demand among large firms declined 5.9% to 281.57 billion kilowatt-hours in fiscal 2008.

Yen Rises 0.6%

The yen gained 0.6% to 99.24 against the dollar from 99.28 yesterday.

Gainers & Losers

JFE Holdings Inc led gainers in the Nikkei 225 index shares with a rise of 10.6% followed by increases in Nippon Steel of 10.5%, in Nissan Motor Co. of 9.6%, in Sumitomo Metal Industries of 9.5%, and Minebea Co. Ltd of 9.4%.

Japan Tobacco led decliners in the Nikkei 225 index shares with a decline of 5.1% followed by losses in Nippon Express of 3.9%, in Chugai Pharmaceutical Co. of 3.3%, in Eisai Co. Ltd of 3.1%, and Nippon Meat Pack of 3%.