In the Bank of Japan's quarterly "tankan" survey of business sentiment, the diffusion index for large manufacturers has risen to 1 in June -- the first time in two years a positive figure has been registered.
The mark was 15 points above the level recorded during the previous survey three months earlier, and it was the fifth consecutive quarter for the index to rise. The last time positive figures were registered was in June 2008, prior to the Lehman Shock that rocked the global economy.
The business confidence index among major non-manufacturers, meanwhile, rose 9 points to minus 5 -- the fifth consecutive quarter of improvement. The figures indicate that economic recovery that has been led by foreign demand and supported by exports to emerging countries is now spreading with a boost in domestic demand.
At the same time, however, concerns are also spreading over credit uncertainties in Europe, an economic slowdown in China and the U.S., and a strong yen, among other issues, and the path toward full-scale economic recovery remains rocky.
The diffusion index is calculated by subtracting the proportion of companies who say that the economy is bad from the proportion who say it is good.
It has been predicted that the index in the tankan survey in June would come to minus 4, but exports boosted the figure for manufacturers to a positive level.
"The economies of emerging countries were better than expected," a Bank of Japan official commenting on the index said.
Mazda President Takashi Yamauchi on July 1 said that sales between April and May were up 20 percent from the same period last year. Due to tax breaks for eco-cars and other factors, domestic sales increased 30 percent. The president, speaking at an event in Tokyo to introduce new vehicles, added that the company also saw sales increases of 20 percent in North America, more than 20 percent in China, and more than 40 percent in Southeast Asia.
In emerging countries, demand for flat-screen television sets has also surged, resulting in shortages of parts. As a result, Panasonic, which had planned sales of a 42-inch television set in June, has delayed release until September.
Responding to the recovery among manufacturers of vehicles, electronics and production machinery, capital investment -- which had been moving slowly -- is starting to pick up.
In the June tankan survey, major manufacturers indicated that they intended to increase capital spending in plants and equipment in fiscal 2010 by 3.8 percent compared with the previous year -- the first time in three years that the figure has been positive. The recovery, boosted by foreign demand and centered on export-related firms, is now also being seen among non-manufacturers.
http://mdn.mainichi.jp/mdnnews/news/20100702p2a00m0na021000c.html
Thursday, July 22, 2010
2009 - Land Prices Fall 8%
Land prices sank by an average of 8.0 percent in 2009 as the rise in office vacancies following the global financial crisis threw cold water on the real estate market, the National Tax Agency said Thursday.
As of Jan. 1, the price of land in Japan had fallen in all 47 prefectures to an average of ¥126,000 per sq. meter, the agency said, or 2.5 points greater than in 2008, when prices also fell nationwide.
These "roadside land prices" are announced each year by the tax agency after it assesses some 380,000 benchmark points across the nation to calculate taxes.
Prices dropped faster in the nation's three top urban centers. The Tokyo region posted the deepest decline, of 9.7 percent, compared with 6.5 percent the previous year.
The Osaka region, however, accelerated its plunge to 8.3 percent from 3.4 percent the previous year, while the Nagoya region fell a slower 7.6 percent, compared with 6.3 percent in 2008.
In the other regions, prices fell 5.9 percent, accelerating from 3.8 percent the previous year.
In the 47 prefectural capitals, 45 logged falling prices, with Tokyo and Nagoya saying prices fell by more than 20 percent.
Only two prefectural capitals — Mie's Tsu and Yamaguchi — saw prices stay unchanged.
A plot of famed Ginza stationary store Kyukyodo in Tokyo retained its title as the nation's most expensive patch of land for the 25th year in a row, but its ¥23.2 million per sq. meter price tag has plunged 25.6 percent in the past year.
The price for the Kyukyodo plot peaked at ¥36.5 million in 1992 and bottomed out at ¥11.36 million in 1997.
http://search.japantimes.co.jp/cgi-bin/nb20100702a1.html
As of Jan. 1, the price of land in Japan had fallen in all 47 prefectures to an average of ¥126,000 per sq. meter, the agency said, or 2.5 points greater than in 2008, when prices also fell nationwide.
These "roadside land prices" are announced each year by the tax agency after it assesses some 380,000 benchmark points across the nation to calculate taxes.
Prices dropped faster in the nation's three top urban centers. The Tokyo region posted the deepest decline, of 9.7 percent, compared with 6.5 percent the previous year.
The Osaka region, however, accelerated its plunge to 8.3 percent from 3.4 percent the previous year, while the Nagoya region fell a slower 7.6 percent, compared with 6.3 percent in 2008.
In the other regions, prices fell 5.9 percent, accelerating from 3.8 percent the previous year.
In the 47 prefectural capitals, 45 logged falling prices, with Tokyo and Nagoya saying prices fell by more than 20 percent.
Only two prefectural capitals — Mie's Tsu and Yamaguchi — saw prices stay unchanged.
A plot of famed Ginza stationary store Kyukyodo in Tokyo retained its title as the nation's most expensive patch of land for the 25th year in a row, but its ¥23.2 million per sq. meter price tag has plunged 25.6 percent in the past year.
The price for the Kyukyodo plot peaked at ¥36.5 million in 1992 and bottomed out at ¥11.36 million in 1997.
http://search.japantimes.co.jp/cgi-bin/nb20100702a1.html
Chinese tourists flock to Japan, lift weak economy
Japan's languishing economy is getting a lift from hundreds of thousands of Chinese tourists who are eager to flaunt their newfound wealth by purchasing brand name goods, from Canon digital cameras to Shiseido cosmetics.
Last year, a record 481,696 Chinese tourists visited Japan, up nearly 20 percent from 2007, according to the Japan National Tourism Organization. While it's difficult to measure the precise impact of Chinese tourist spending, it is warmly welcomed by Japan's struggling retailers.
As Japan's population ages and declines, the world's No. 2 economy will become increasingly dependent on such consumer spending from those who live outside the country — and Tokyo knows it.
Japan will ease tourist visa restrictions on July 1 for mainland Chinese citizens, hoping to draw more visitors — and their big wallets.
Thanks to years of rapid growth, China now has the world's fourth largest population of millionaires after the United States, Japan and Germany, according to a Merrill Lynch Wealth Management/Capgemini survey.
To cash in on China's rising wealth, Tokyo will start to issue tourist visas to Chinese who hold gold cards — credit cards granted to those above a certain income level with good credit histories — or who earn more than 60,000 yuan ($8,800) annually.
That's down sharply from a previous income requirement of 250,000 yuan ($37,000) per year, a threshold that apparently was imposed to keep low-income earners from staying on and becoming illegal aliens.
The revised income requirement is still well above the average income for a Chinese city dweller — 19,000 yuan ($2,800) last year.
For Chinese tourists, shopping is the most popular activity while in Japan.
http://www.google.com/hostednews/ap/article/ALeqM5hbo1xSifyRFYI3LW95Zfu_4u-drwD9GKOE8G0
Last year, a record 481,696 Chinese tourists visited Japan, up nearly 20 percent from 2007, according to the Japan National Tourism Organization. While it's difficult to measure the precise impact of Chinese tourist spending, it is warmly welcomed by Japan's struggling retailers.
As Japan's population ages and declines, the world's No. 2 economy will become increasingly dependent on such consumer spending from those who live outside the country — and Tokyo knows it.
Japan will ease tourist visa restrictions on July 1 for mainland Chinese citizens, hoping to draw more visitors — and their big wallets.
Thanks to years of rapid growth, China now has the world's fourth largest population of millionaires after the United States, Japan and Germany, according to a Merrill Lynch Wealth Management/Capgemini survey.
To cash in on China's rising wealth, Tokyo will start to issue tourist visas to Chinese who hold gold cards — credit cards granted to those above a certain income level with good credit histories — or who earn more than 60,000 yuan ($8,800) annually.
That's down sharply from a previous income requirement of 250,000 yuan ($37,000) per year, a threshold that apparently was imposed to keep low-income earners from staying on and becoming illegal aliens.
The revised income requirement is still well above the average income for a Chinese city dweller — 19,000 yuan ($2,800) last year.
For Chinese tourists, shopping is the most popular activity while in Japan.
http://www.google.com/hostednews/ap/article/ALeqM5hbo1xSifyRFYI3LW95Zfu_4u-drwD9GKOE8G0
May - unemployment rises as output slows
Japan's unemployment rate rose unexpectedly in May as household consumption fell and factory production declined, illustrating the fragile nature of Japan's gradual recovery from recession.
The unemployment rate edged higher in May to 5.2 percent, rising by 0.1 percentage points from the previous month, government data showed Tuesday.
The rate fell below market expectations of 5.0 percent forecast by economists surveyed by Dow Jones Newswires.
It was the 28th consecutive monthly decline in the number of people in employment, the government said, with the workforce now standing 470,000 lower than a year earlier.
Average household consumption also fell unexpectedly in May by 0.7 percent on-year, the government said, defying expectations of a 0.5 percent rise as weak domestic demand continues to burden the Japanese economy.
Crippling deflation, and weak domestic demand continue to weigh on growth as consumers defer purchases in the hope of further price falls. The government has said it aims to end deflation by fiscal 2011.
Factory output was down 0.1 percent on month in May, the first drop in three months following a 1.3 percent gain in April.
The latest data may raise concerns about Japan's output growth in the months ahead, given a recent slowdown in export growth amid anxieties over both the impact of global stimulus withdrawal and European debt on exports.
http://news.yahoo.com/s/afp/20100629/bs_afp/japaneconomy_20100629012551
The unemployment rate edged higher in May to 5.2 percent, rising by 0.1 percentage points from the previous month, government data showed Tuesday.
The rate fell below market expectations of 5.0 percent forecast by economists surveyed by Dow Jones Newswires.
It was the 28th consecutive monthly decline in the number of people in employment, the government said, with the workforce now standing 470,000 lower than a year earlier.
Average household consumption also fell unexpectedly in May by 0.7 percent on-year, the government said, defying expectations of a 0.5 percent rise as weak domestic demand continues to burden the Japanese economy.
Crippling deflation, and weak domestic demand continue to weigh on growth as consumers defer purchases in the hope of further price falls. The government has said it aims to end deflation by fiscal 2011.
Factory output was down 0.1 percent on month in May, the first drop in three months following a 1.3 percent gain in April.
The latest data may raise concerns about Japan's output growth in the months ahead, given a recent slowdown in export growth amid anxieties over both the impact of global stimulus withdrawal and European debt on exports.
http://news.yahoo.com/s/afp/20100629/bs_afp/japaneconomy_20100629012551
May - Growth in Japan retail sales slackens
Japan's retail sales expanded for the fifth straight month in May, though growth in spending lost momentum as government stimulus measures fade.
Retail sales rose 2.8 per cent from the same month a year earlier, the government said Monday.
The result compares with gains of almost 5 per cent in both March and April and marks the slowest growth since January.
Compared with the previous month, retails sales in May fell a seasonally adjusted 2 per cent in the first decline in five months.
Autos and household machinery sales were particularly weak, reflecting the waning effects of consumer incentives for cars and energy-efficient home appliances.
Despite the latest figure, economists say they expect consumer spending to stay solid in the months ahead as Japan's economy improves.
Robust exports have led to higher corporate profits and factory production, which is gradually filtering down to workers and households.
"Looking ahead, we believe that underlying trend of consumption will remain firm with a gradual improvement in labour market and wages," said Masamichi Adachi, senior economist at JPMorgan Securities Japan, in a note to clients.
Sales at large retail stores fell 4 per cent from a year earlier, after adjusting for the change in the number of stores, according to the Ministry of Economy, Trade and Industry.
http://news.smh.com.au/breaking-news-business/growth-in-japan-retail-sales-slackens-20100628-ze41.html
Retail sales rose 2.8 per cent from the same month a year earlier, the government said Monday.
The result compares with gains of almost 5 per cent in both March and April and marks the slowest growth since January.
Compared with the previous month, retails sales in May fell a seasonally adjusted 2 per cent in the first decline in five months.
Autos and household machinery sales were particularly weak, reflecting the waning effects of consumer incentives for cars and energy-efficient home appliances.
Despite the latest figure, economists say they expect consumer spending to stay solid in the months ahead as Japan's economy improves.
Robust exports have led to higher corporate profits and factory production, which is gradually filtering down to workers and households.
"Looking ahead, we believe that underlying trend of consumption will remain firm with a gradual improvement in labour market and wages," said Masamichi Adachi, senior economist at JPMorgan Securities Japan, in a note to clients.
Sales at large retail stores fell 4 per cent from a year earlier, after adjusting for the change in the number of stores, according to the Ministry of Economy, Trade and Industry.
http://news.smh.com.au/breaking-news-business/growth-in-japan-retail-sales-slackens-20100628-ze41.html
May - Consumer Prices fall for 15th Month
Japan says consumer prices fell for the 15th straight month in May as deflation kept its grip.
The core consumer price index, which excludes fresh food, fell 1.2 percent from a year earlier.
The result compares Kyodo news agency's average market forecast for a 1.3 percent decline.
http://news.yahoo.com/s/ap/20100624/ap_on_bi_ge/as_japan_economy_3
The core consumer price index, which excludes fresh food, fell 1.2 percent from a year earlier.
The result compares Kyodo news agency's average market forecast for a 1.3 percent decline.
http://news.yahoo.com/s/ap/20100624/ap_on_bi_ge/as_japan_economy_3
May - Exports Rise for 6th Straight Month
Japan's exports expanded for a sixth straight month in May as brisk global demand for cars and high-tech products helped shore up a recovery.
The finance ministry said that exports rose 32.1 percent from a year earlier to 5.3 trillion yen ($59 billion), marking the sixth month of year-on-year increase.
Growth in exports is vital to Japan's economy as exports alone account for 10 percent of the nation's gross domestic product.
Robust global demand, particularly in Asia, is supporting growth in Japanese exports and fueling an economic recovery. Japan recently upgraded its growth forecast to 2.6 percent in the current fiscal year thanks to an upturn in exports.
Among key regions, Japan's exports to Asia jumped 34.4 percent in May, marking the seventh consecutive month of year-on-year increase. Asia-bound shipments alone accounted for nearly 60 percent of Japan's total exports in the month.
Japan's auto exports to Asia expanded 56 percent while steel shipments to the region soared 78.8 percent in May.
Japan's exports to China also rose 25.3 percent, lifted by rising demand for cars and steel products.
Meanwhile, the country's exports to the United States grew 17.7 percent on recovering demand for cars. U.S.-bound auto exports rose 23.4 percent in May, with auto parts shipments to the United States up 40 percent.
Japanese exports to the European Union rose 17.4 percent last month.
Imports in May grew 33.4 percent to 5.0 trillion yen, resulting in a trade surplus of 324 billion yen.
http://www.forbes.com/feeds/ap/2010/06/23/business-as-japan-economy_7715462.html?feed=rss_asia
The finance ministry said that exports rose 32.1 percent from a year earlier to 5.3 trillion yen ($59 billion), marking the sixth month of year-on-year increase.
Growth in exports is vital to Japan's economy as exports alone account for 10 percent of the nation's gross domestic product.
Robust global demand, particularly in Asia, is supporting growth in Japanese exports and fueling an economic recovery. Japan recently upgraded its growth forecast to 2.6 percent in the current fiscal year thanks to an upturn in exports.
Among key regions, Japan's exports to Asia jumped 34.4 percent in May, marking the seventh consecutive month of year-on-year increase. Asia-bound shipments alone accounted for nearly 60 percent of Japan's total exports in the month.
Japan's auto exports to Asia expanded 56 percent while steel shipments to the region soared 78.8 percent in May.
Japan's exports to China also rose 25.3 percent, lifted by rising demand for cars and steel products.
Meanwhile, the country's exports to the United States grew 17.7 percent on recovering demand for cars. U.S.-bound auto exports rose 23.4 percent in May, with auto parts shipments to the United States up 40 percent.
Japanese exports to the European Union rose 17.4 percent last month.
Imports in May grew 33.4 percent to 5.0 trillion yen, resulting in a trade surplus of 324 billion yen.
http://www.forbes.com/feeds/ap/2010/06/23/business-as-japan-economy_7715462.html?feed=rss_asia
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