Japan Unemployment 5.3%; Nikon, Takeda Rise

123jump.com Staff
30 Oct, 2009
New York City

Japan unemployment increased to 5.3% in September and consumer prices declined 2.2% from a year ago in the month. Nikon Corp increased after it lifted its outlook. Takeda Pharmaceuticals after its first half income surged. Sumitomo Trust & Banking first half net fell 33%.

[R]5:00AM New York, 7:00PM Tokyo – Japan unemployment increased to 5.3% in September and consumer prices declined 2.2% from a year ago in the month. Nikon Corp increased after it lifted its outlook. Takeda Pharmaceuticals after its first half income surged. Sumitomo Trust & Banking first half net fell 33%. The Bank of Japan plans to discontinue purchase of corporate bonds.[/R]

Japanese stocks rose 1.5% helping the index pare its loss for the month to 1.7% as a raft of government reports indicated that the economy is on the rebound.

The unemployment rate eased to 5.3% in September and consumer price index dropped 2.2% in the month, according to two government reports.

Earnings from Takeda Pharmaceuticals and Sharp Corp. also strengthened market sentiment.

In Tokyo trading Nikkei 225 Index gained 1.5% or 143.64 to 10,034.74, falling 1.7% for the month, and the broader Topix Index jumped 1.4% to 894.67.

In the first section of the Tokyo Stock Exchange 8.9 billion shares worth 648 billion yen traded and in the second section 337 million shares valued at 3.5 billion yen changed hands.

Of the Nikkei 255 index stocks, 169 rose, 44 declined, and 12 were unchanged. Olympus Corp. led gainers in the index shares with a rise of 9.2% followed by Nisshinbo Holdings increasing 7.5%.

Unemployment Rates Falls to 5.3%

Japan’s statistics bureau reported today the number of unemployed person rose 33.9% to 3.63 million from the previous year. The seasonally adjusted unemployment rate eased to 5.3%.

In addition, the number of employed persons declined 1.5% to 69.95 million from a year earlier.

CPI Falls 2.2%

Separately, the statistics bureau revealed that the consumer price index for Japan dropped 2.2% to 100.4 from a year ago, but remained flat from a month earlier.

Food prices fell 0.2% from August and declined 0.5% from the same period a year ago and home prices were unchanged from a month ago and fell 0.2% from a year earlier.

Fuel, light and water charges dropped 0.5% from a month earlier and declined 9.1% from a year ago.

Consumer prices in the Ku-area of Japan- a harbinger of prices in Japan- fell 0.4% from September and fell 2.4% over the year to 99.4 in October.

Food prices tumbled 1.7% in the month and plummeted 2.9% over the year.

Japan’s Consumption Expenditures Rise 1% in September

According to the bureau, the average of monthly consumption expenditures per household rose 1% to 277,110 yen in real terms.

Average monthly income per household fell 0.1% from a year ago to 422,120 yen and average consumption expenditures rose 0.6% from a year ago to 301,796 yen.

Bank of Japan Stops Buying CP, Bonds

Bank of Japan reported today in a statement on monetary policy that in light of the improving market conditions it will cease buying Commercial Paper and corporate bonds at the end of 2009.

“Outright purchases of CP and corporate bonds will expire at the end of 2009 as scheduled, given that issuing conditions in the CP and corporate bond markets have been improving markedly and thus the purpose of the purchases to restore market functioning has been achieved,” said BoJ.

Gainers & Losers

Commodity stocks gained after crude oil prices increased 3% to $79.9 per barrel and gold prices advanced 1.6% to $1,047 per ounce. Nippon Steel soared 4.4% and Kobe Steel jumped 4.4%.

Daiwa Securities gained 2.9% after reporting that net income rose to 2 billion yen from a loss of 20.5 billion yen a year ago. Sales fell to 106 billion yen from 132 billion a year ago.

Nintendo Company dropped 3.6% to 23,180 yen after it cut its annual income estimate by 23% on weaker than expected sale of its recently launched new game console. Nintendo was the second most active stock in Tokyo trading.

Sharp rose 2.5% after the company recorded a loss of 17.7 billion yen in the six months ended September 30 from the 19 billion yen loss that was projected by economists.

Sumitomo Trust Holdings Inc dropped 6.2% to 487 yen after it reported first half net income declined 33% from a year ago.

Olympus Corp surged 9.2% to 2,900 yen after Nikkei estimated that the company is likely to report first half net to increase 47% to 28 billion yen.

Takeda Pharmaceuticals jumped 3.4% after net income in the first half ended September rose more than two fold to 189.6 billion yen.

Sony Corp increased 2.7% to 2,785 yen after it reported second quarter sales declined 20% and a net loss of 26.3 billion yen.

Earnings Review

Panasonic Corporation, the manufacturer of electronic and electric products said second quarter sales fell 21% to ¥1.74 trillion from ¥2.19 trillion a year ago. Net profit for the quarter fell 89% to ¥6.1 billion or ¥2.95 per diluted share compared to net profit of ¥55.5 billion or ¥26.72 per share a year ago.

Panasonic Corporation, in the last one year traded as high as ¥1,740.00 in November 2008 and as low as ¥1,000.00 in December 2008. Based on the yesterday’s closing price of ¥1,292.00 the company has market cap of ¥2.68 trillion.

Sony Corporation, the consumer electronics company said second quarter sales fell 20% to ¥1.66 trillion from ¥2.07 trillion a year ago. Net loss for the quarter was ¥26.3 billion or ¥26.22 per diluted share compared to net profit of ¥20.8 billion or ¥19.83 per share a year ago.

Sony Corporation, in the last one year traded as high as ¥2,830.00 in August 2009 and as low as ¥ 1,491.00 in February 2009. Based on the yesterday’s closing price of ¥2,785.00 the company has market cap of ¥2.80 trillion.

Takeda Pharmaceutical Company Limited, the drugmaker said first-half sales fell 6.4% to ¥755.5 billion from ¥807.1 billion a year ago. Net profit for the first-half rose 164% to ¥189.6 billion or ¥240.21 per diluted share compared to net profit of ¥71.8 billion or ¥87.33 per share a year ago.

Takeda Pharmaceutical Company Limited, in the last one year traded as high as ¥5,240.00 in November 2008 and as low as ¥3,130.00 in March 2009. Based on the yesterday’s closing price of ¥3,650.00 the company has market cap of ¥2.88 trillion.