News On Japan

Japan still a bridge too far on many fronts

China Daily — 2009-07-03 13:33:03

The global economic landscape may see a milestone change this year, for China is widely regarded to replace Japan as the second largest economy in the next few months. But for that to happen China's economy has to grow by 6 to 8 percent, while Japan's has to contract further. Last year, China's GDP was $4.22 trillion against Japan's $4.84 trillion. And even though China's GDP may overtake Japan's, the two economies have major quantitative and qualitative differences. (China Daily)

Bank of Japan exit strategy debate heats up

Reuters — 2009-07-03 13:19:26

A survey showing Japanese businesses in a grim mood in June should have settled the debate at the central bank on whether to end support for the corporate finance market. It has not. In fact the debate will likely intensify as the Bank of Japan tries to avoid the missteps of its response to the last spell of deflation. And it will probably be watched by central bankers around the world considering ways to retract their own response to the financial crisis. (Reuters)

Major nations should back dollar as key currency: Japan

Reuters — 2009-07-03 13:19:26

Major countries should support the dollar as the key international currency, although emerging nations may discuss a new global reserve currency on the sidelines of the G8 summit next week, a Japanese official said on Friday. (Reuters)

If Paul Krugman were Japanese

NewsWeek — 2009-07-02 23:38:47

Narika Hama, a professor of economics at Doshisha University in Kyoto, is a sort of Japanese version of Paul Krugman -- if Paul Krugman were a woman with a purple rinse, pink jacket, funky blue jeans, black patent leather pumps, and a vague British accent. Hama, who lived in the United Kingdom as a child in the 1960s, is something of an intellectual celebrity in Japan. (NewsWeek)

Japan economy 'still sluggish'

Straits Times — 2009-07-02 23:38:47

Japan's economy has hit the bottom of its deepest recession since World War II but it is 'still sluggish,' the country's new economic and fiscal policy minister said on Thursday. 'Although the economy has hit bottom (during the January-March period), it is still sluggish and levels are lower than those before the financial crisis,' Yoshimasa Hayashi said at his first press conference after taking the position. (Straits Times)

Cabinet OKs record budget ceiling

Asahi — 2009-07-02 02:37:29

The Cabinet on Wednesday approved a record 52.7 trillion yen cap on general policy budget spending for the fiscal year starting in April 2010. (Asahi)

Roadside land values fall across nation for the 1st time in 4 years

Asahi — 2009-07-02 02:37:29

Key land prices used to determine tax amounts dropped nationwide in 2009 for the first time in four years, the National Tax Agency said Wednesday, reflecting the impact of the global financial crisis on the real estate market. (Asahi)

Business sentiment improves slightly

Asahi — 2009-07-02 02:57:45

Business sentiment among large companies improved for the first time in two and a half years, but the general feeling remains one of continued economic gloom. (Asahi)

'Super solar loans' green way to stoke economy

Asahi — 2009-07-02 02:57:45

As an economist whose job is to analyze fiscal policies both in and outside the nation, I expected the government to devise a powerful policy package to tame the ongoing economic crisis. (Asahi)

Japan's debt financing program carries risks

Forbes — 2009-07-01 11:44:48

Massive fiscal stimulus drives undertaken by governments around the world since the onset of the financial crisis and global economic recession have pushed up levels of public borrowing dramatically. Japan has undertaken what the International Monetary Fund says is one of the largest fiscal stimulus programs among advanced nations, equal to 2.4% of gross domestic product in 2009 and a further 1.8% in 2010. (Forbes)

Japanese yen: Under pressure to appreciate

rediff.com — 2009-07-01 11:44:48

The Japanese yen is appreciating quite stridently in the last few days. One of the key reasons for the yen's recent strength is the uncollateralized overnight call rate, which the BOJ has decided to keep unchanged at around 0.1%, at a time of high-risk aversion amid global crisis. (rediff.com)

Big manufacturers' sentiment improves for 1st time in 2.5 years: BOJ

AP — 2009-07-01 06:55:00

Business sentiment among major Japanese manufacturers improved for the first time in two and a half years during the three months through June from the previous quarter amid pick-ups in exports and the government's economic stimulus measures, the Bank of Japan said Wednesday. But the central bank's Tankan business survey showed the level of key business sentiment index still remained in the minus territory for the fourth quarter in a row and big companies plan to cut capital spending in fiscal 2009 by a record margin from a year earlier, highlighting the continuing severity that the Japanese economy faces. (AP)

Unemployment in Japan will be above 6% by August

SeekingAlpha — 2009-07-01 04:26:33

Since the beginning of 2009, the unemployment rate in Japan has been on rise. The Statistical Bureau of Japan has just announced a severe increase in the (seasonally adjusted) unemployment rate up to 5.2% in May. There was only 4.1% unemployment in December 2008. (SeekingAlpha)

Japan's average land prices fall for 1st time in 4 years

AP — 2009-07-01 04:17:41

Land prices have dropped across Japan for the first time in four years, testifying to the severe effect of the global financial crisis on the domestic real estate market, according to data released by the National Tax Agency Wednesday. The average price of land per square meter along selected streets across the country fell 5.5 percent, or 8,000 yen, from a year earlier to 137,000 yen as of Jan. 1, the agency said. (AP)

At long last, Korea and Japan return to trade talks

joins.com — 2009-07-01 04:14:38

After four years of stalled negotiations, Korea and Japan are ready to restart free trade agreement talks. Korea and Japan will hold their third working-level meeting on resuming negotiations for a bilateral free trade agreement deal today in Tokyo, according to the Ministry of Foreign Affairs and Trade yesterday. (joins.com)

Japan's two paced economy

engadget.com — 2009-06-30 00:15:06

Industrial production failed to rise in May from April's surge, despite earlier surveys suggesting that it would and retail sales were weak, strongly suggesting there will be no help for the economy from consumers, not with deflation now tightening its grip on the economy. Japan's Trade and industry Ministry said yesterday that output in May rose 5.9% from April, which in turn was up 5.9% from March. (engadget.com)

Japan job woes deepen but consumption points up

Forbes — 2009-06-30 04:24:17

Japan's jobless rate rose to a new 5-1/2-year high in May and job availability sank to record low but government stimulus efforts prompted a modest rise in household spending, reinforcing forecasts the economy will return to growth in the current quarter. (Forbes)

Japan's long-term employment system worth looking at again: white paper

AP — 2009-06-30 09:59:21

Japan's once prevalent employment system based on the long- term hiring of workers is worth looking at again as a way to stabilize the nation's battered labor market and help restore its economy, a government white paper said Tuesday. The ongoing economic downturn since last fall has severely affected the labor market, with manufacturers cutting back on overtime work and slashing temporary jobs, the white paper on the labor economy 2009 says, adding that the negative impacts are much more severe than those seen during the previous two economic downturns in 1997 and after. (AP)

Japanese household spending rises 0.3% in May

AP — 2009-06-30 00:17:33

Average Japanese monthly household spending rose a price-adjusted 0.3 percent in May from a year earlier to 285,530 yen, up for the first time since January 2008, the government said Tuesday. (AP)

Japanese workers to take 7.8 days of summer break

AP — 2009-06-29 11:35:37

Major Japanese companies will allow their employees to take an average of 7.8 days off this summer, slightly down from 8.1 days last year, a survey by an affiliate of the labor ministry showed Monday. (AP)

Japan's bizarre new mortgage crisis

Reuters — 2009-06-28 23:56:00

During the housing boom, we came up with some pretty screwy mortgages so that everyone, regardless of economic situation, could get the perfect, tailor-made loan for buying a house. Still, even we were surprised to read about how mortgages are structured in Japan, and why the current downturn is setting off new housing problems. (Reuters)

Sluggish growth, weak job market ahead

Reuters — 2009-06-28 23:55:21

The global economy appears to be shaking off a deep recession, but the recovery is likely to be anemic and some damage could be long-lasting. The United States and Japan look set to pick themselves off the mat first among major economies with gradually improving business confidence, but high unemployment is expected to linger in the United States and Europe. (Reuters)

The only bonus you'll get this summer is the sun

Japan Times — 2009-06-28 00:50:04

One of the cleverest ideas developed by the Japanese business world is the distribution of semiannual "bonuses" to employees. Usually, a bonus is tied to a company's good fortune or an employee's performance. Japanese workers have always deemed them to be part of their salaries and tend to plan their finances accordingly. Employees and employers look at bonuses differently: The former see them as an entitlement, while the latter use them as a safety valve. (Japan Times)

Japan's Yosano: Economy could grow in 2010/11

Reuters — 2009-06-26 23:55:56

Finance Minister Kaoru Yosano said on Friday the government will compile its budget for the fiscal year from next April based on an assumption that Japan's economy may post growth in that year. (Reuters)

Will deflation spoil Japan's economic recovery?

BusinessWeek — 2009-06-26 22:51:03

In recent weeks there have been signs that the worst of Japan's economic slump is over. Gross domestic product, which plunged at a terrifying pace after the collapse of Lehman Brothers last fall, is expected to grow at a moderate pace this quarter. The stock market is up a third from two-decade lows in March. And, despite plunging global sales, Toyota's new president Akio Toyoda sounded reasonably upbeat yesterday at a first press conference since taking over from Katsuaki Watanabe on June 23. (BusinessWeek)