Japan Production Rebounds; Unemployment Up

123jump.com Staff
29 May, 2009
New York City

Industrial production in April surged and is expected to rise in May at a faster pace. The rebound in exports of electronics and automobiles helped manufacturing to recover. The consumer price index in the month fell and unemployment surged to a five-year high. Shipper gained and retailers fell.

[R]6:00 PM Tokyo – Industrial production in April surged and is expected to rise in May at a faster pace. The rebound in exports of electronics and automobiles helped manufacturing to recover. The consumer price index in the month fell and unemployment surged to a five-year high.[/R]

Industrial production in April rose sharply and is expected to rise in May according to the latest data from the Ministry of Trade. The unemployment surged to 5% and consumer prices in the month declined.

The higher than expected increase in production lifted the sentiment in stock trading. The Nikkei 225 Index in Tokyo closed higher 71.11 or 0.75% to 9,522.50. For the week the index increased 3.2% and for the month added 7.9%.

Mining and shipping companies led the advancers in Tokyo trading. Kawasaki Kisen increased 6.4% to 431 yen and Nippon Yusen KK added 5.3% to 456 yen.

Industrial Production, CPI and Household Spending, Unemployment

Industrial production index in Japan increased for the second month in a row in April and may surge in May.

The index showed an increase of 5.2% in April and 2.3% gain in shipment. Inventory index declined 2.7% from March.

Industrial production and shipment declined 31.2% from a year ago month and inventories fell 7.2%. A rebound in exports of electronics, chemical and transportation lifted the production.

The forecast for May month index was revised upwards to 8.8% from 6.1% and for June 2.7%.

Statistics Bureau reported a rise in unemployment rate in April. The rate increased to 5% in the month from 4.8% in March.

The number of unemployed people in Japan in April increased 710,000 to 3.46 million. The unemployed increase 26% from a year ago in the month.

The consumer price index in April increased 0.1% from March and declined 0.1% from a year ago month. The price index in Ku-area of Tokyo decreased 0.2% and down 0.8% from a year ago.

The statistical bureau also reported that monthly consumption expenditures per household for April decreased 1.4% to 306,340 yen in current prices and decreased 1.3% in real terms.

Monthly income per household increased 0.9% to 473,779 yen or increase of 0.4% in real terms. The average consumption expenditures in nominal terms increased 0.3% to 344,514 yen or an increase of 0.4% from previous year.

Gainers & losers

Retailers and shopping centers operators declined after consumer prices and household spending was restrained. Yamada Denki decreased 2.7% to 5,440 yen and Izumi Corp fell 5% to 1,131 yen.

Maezawa Industries Inc, the water treatment and sewage disposable equipment maker as unchanged at 188 yen after it estimated annual net loss of 3.37 billion yen compared to previous estimate of 1.2 billion yen.

Naikai Zosen Corp decreased 1.5% to 338 yen after the ship builder reported that it plans to buy back as much as 2.24 billion yen worth of stocks between the third week of August and November 30.

Nippon Parking Development Co. increase 6.6% to 4,980 yen after it reported net income declined 15% to 363 million yen for the nine months period ending in April on sales increase of 7% to 5.94 billion yen. The earnings per share declined to 107.13 yen from 125.33 yen in the year ago period.

Oliver Corp, the maker of interior furniture decreased 3.2% to 1,200 yen after it reported weak sales for the six month ending in April and net income of 356 million yen.

Sumco Corporation decreased 1.1% to 1,469 yen after it reported sales for the fiscal year ending in March declined 17.5% to 391 billion yen and net income plunged 74.8% to 18.8 billion yen. Net income per share declined to 74.36 yen from 294.34 yen a share in prior fiscal year.

Nikkei 200 Average Movers

Credit Saison Co., Ltd led the decliners in the Nikkei 225 index of 4.9% followed by losses in Mitsubishi UFJ Financial Group Inc of 4.1%, in Kajima Corp of 3.5%, in The Sumitomo Trust and Banking Company, Limited of 3.2% and in Citizen Holdings Co Ltd of 2.8%.

Tosoh Corporation led gainers in the Nikkei 225 index with a rise of 13.9% followed by gains in Toho Zinc Co. Ltd. of 11.7%, in Mitsui Chemicals Inc of 8.2% and Mitsui Fudosan Co. Ltd of 7.0%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 71.11 or 0.75% to 9,522.50, Hang Seng index in Hong Kong increased 285.73 or 1.60% closed to 18,171.00, ASX 200 index in Australia increased 62.40 or 1.66% closed to 3,818.10. The KL Composite index in Malaysia higher 2.87 or 0.28% closed to 1,044.11.The Markets of China were closed today.

The Kospi Index in South Korea increased 3.72 or 0.27% to close at 1,395.89. SET index in Thailand closed higher 4.98 or 0.90% to 560.41 and JSE Index in Indonesia increased 13.96 or 0.73% closed to 1,916.83. The Sensex index in India increased 329.24 or 2.30% closed to 14,625.25.