Strong economic data from Japan, published on Monday, helped ease concerns about the second fall of the economy and raised the Tokyo stock market to 14-month high.
Last month, industrial production increased with the highest rate since May, according to the Ministry of Economy, Trade and Industry. The November increase of 2,6% compared with the October to 0.5% was the ninth consecutive month of growth.
Manufacturers surveyed by the Ministry stated that they expect output growth to 3.4% in December and 1.3% in January.
Retail sales, meanwhile fell by 1% in November compared with a year earlier, but this figure is less than predicted Reuters (1,2%).
Strong data, which came after Japan reported on the 8th month of export growth due to steady demand in Asia, the Nikkei 225 index allowed to grow by almost 1.4% to 10,639.43, the highest figure since October last year.
"This is a very good data. Given the strong exports, I do not think that Japan can expect a second wave of recession in the first half of 2010 "- said Kehi Morita, chief economist at Barclays Capital in Tokyo.
However, while Japanese exports grew, domestic demand was less rosy due to deflationary pressures.
In November, the total income of the Japanese wage workers fell by 2,8% compared with a year earlier, according to data of the Ministry of Public Health, Labor and Welfare. The fall, which accelerated over the revised c 1,9% fall in October, lasts for 18 months in a row.
Latest unemployment rate rose by 5.2%, while consumer prices fall ninth consecutive month.
Government has announced a record budget expenditures for next fiscal year in order to stimulate domestic demand.
Finance Minister Hirohisa Fujii was hospitalized Monday due to high pressure and exhaustion during work on the budget of the Government, told Bloomberg. Fuji, which 77 years remain in the hospital for about 10 days, the report said.
Last month, industrial production increased with the highest rate since May, according to the Ministry of Economy, Trade and Industry. The November increase of 2,6% compared with the October to 0.5% was the ninth consecutive month of growth.
Manufacturers surveyed by the Ministry stated that they expect output growth to 3.4% in December and 1.3% in January.
Retail sales, meanwhile fell by 1% in November compared with a year earlier, but this figure is less than predicted Reuters (1,2%).
Strong data, which came after Japan reported on the 8th month of export growth due to steady demand in Asia, the Nikkei 225 index allowed to grow by almost 1.4% to 10,639.43, the highest figure since October last year.
"This is a very good data. Given the strong exports, I do not think that Japan can expect a second wave of recession in the first half of 2010 "- said Kehi Morita, chief economist at Barclays Capital in Tokyo.
However, while Japanese exports grew, domestic demand was less rosy due to deflationary pressures.
In November, the total income of the Japanese wage workers fell by 2,8% compared with a year earlier, according to data of the Ministry of Public Health, Labor and Welfare. The fall, which accelerated over the revised c 1,9% fall in October, lasts for 18 months in a row.
Latest unemployment rate rose by 5.2%, while consumer prices fall ninth consecutive month.
Government has announced a record budget expenditures for next fiscal year in order to stimulate domestic demand.
Finance Minister Hirohisa Fujii was hospitalized Monday due to high pressure and exhaustion during work on the budget of the Government, told Bloomberg. Fuji, which 77 years remain in the hospital for about 10 days, the report said.
The Financial Times
December 28
December 28
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