TOKYO (Nikkei)--More than 70% of corporate leaders responding to a Nikkei Inc. quarterly survey said they believe the domestic economy has improved from six months ago. The Nikkei polled business chiefs such as chairmen and presidents at major domestic firms through late June, eliciting responses from 140 companies. A total of 73.6% pointed to brighter economic conditions, a 12.3 percentage point jump from the previous survey in March. None of the bosses, however, noted a deterioration in conditions. As a result, the diffusion index for current economic conditions, measured by the percentage of respondents citing improvements from six months ago minus those that said the opposite, came to 73.6. This far surpassed the reading of 59.2 in the prior survey.
As for the main factor propelling the domestic turnaround, 81.4% pointed to "economic growth in China and other emerging nations." A small number, 4.9%, cited "economic recoveries in developed markets like the U.S.," 4.9% also said "the completion of inventory adjustments" was driving the turnaround.
A whopping 66.4% counted "growth in overseas operations in emerging nations and other markets" among the tasks they will tackle this fiscal year, with up to three answers allowed. This marked a 27.7 point increase from the previous survey's 38.7% that said the same.
Meanwhile, 44.3% of the business leaders predicted "growth overseas, but an absence of growth in the domestic market," for their corporate earnings three years from now. This underscores Japanese firms' growing reliance on emerging markets for earnings growth.
The survey results also show that corporate chiefs are closely monitoring the government's growth strategy plan. When asked which economic policy issues they believe are crucial heading into next month's upper house election, 56.4% cited "a growth strategy," with up to three responses allowed. Respondents citing "measures to improve corporate competitiveness" and "fiscal rebuilding" were 48.6% and 44.3%, respectively.
Source: The Nikkei June 29
TOKYO (Nikkei)--Japan is moving forward with plans to offer medical-stay visas to encourage the world's wealthy to come Japan for advanced medical services.
A government panel tasked with discussing ways to revitalize medicine released Wednesday a list of proposals for consideration by the Ministry of Economy, Trade and Industry; the Ministry of Foreign Affairs; and the Ministry of Health, Labor and Welfare.
Among them are an medical visa that offers a more flexible length of stay and can be extended. Also envisioned is adding "medical" to the purposes section of 90-day business visas.In addition, the government would ease some regulations for hospitals and other institutions certified to accept foreign medical tourists. Restrictions on foreign doctors could be eliminated, for example.
Japan's advanced medical infrastructure has spurred a growing number of foreigners to seek tests for cancer and other conditions. With this in mind, the government will consider setting up a referral system for foreign patients seeking treatment at Japanese hospitals. It will also focus on developing training programs for medical interpreters.
METI estimates a roughly 1 trillion yen positive economic impact on Japan from welcoming 500,000 foreigners for medical treatment here.
Source: The Nikkei July 1
TOKYO (Nikkei)--Japanese corporate sentiment is improving in a growing number of industries but concern about the economic outlook lingers, according to the Bank of Japan's latest tankan survey.
The diffusion index of business sentiment among large manufacturers swung back into positive territory for the first time in two years, up 15 points from three months earlier to 1. The index rose sharply among big non-manufacturers and smaller firms, indicating that the recovery, led by exporters, has begun to benefit an increasing number of businesses.
But the DI for large manufacturers is expected, based on their response to the survey, to rise only 2 points from current levels in three months' time. That would be the smallest growth margin of the current recovery phase. The weak outlook indicates that the recovery is losing momentum.
Companies are in no hurry to boost capital spending this fiscal year after reducing it sharply last term. These results indicate that it will take a while before sustained economic recovery, led by private-sector demand, is achieved. The slowing recovery reflects the government's inability to map out an effective strategy to lift the economy from deflation. The DI for production capacity stood at 17, still tracking above the level seen in December 2008, immediately after the global financial crisis struck. The higher the index, the greater the sense of excess capacity in the corporate sector.
Deflation is eroding corporate profits as many firms are hit by a double whammy of rising input costs and falling retail prices. The uncertain global economic outlook is also hurting corporate sentiment.
Source: The Nikkei July 1
TOKYO (Nikkei)--The Bank of Japan is leaning toward upgrading its economic forecast for the current fiscal year when its policy board meets later this month.
With industrial output and exports flowing more strongly than initially expected, the central bank will likely lift its outlook for price-adjusted growth to upwards of 2.5% from the current 1.8%.
The BOJ issues projections for the economy and prices in April and October and updates them after three months. Governor Masaaki Shirakawa and the rest of the board will revisit the April outlook at their two-day meeting starting July 14. Last month, the government upgraded its forecast for real growth in fiscal 2010 to 2.6% from 1.4%. The results of the bank's latest quarterly tankan survey, released Thursday, showed a significant improvement in business confidence. The diffusion index for major manufacturer sentiment returned to positive territory for the first time in two years, surprising market forecasters with the size of its jump. But some question how long factory output and exports can continue to support the economy. The BOJ will likely leave its growth forecast for fiscal 2011 unchanged at 2%.
The BOJ typically raises its forecasts for the economy and consumer prices at the same time, but with crude oil weak the bank is not expected to make significant changes to its price outlook.
Japan's rebound out of recession has been driven by fast-growing emerging economies. Now it is threatened by fiscal uncertainty in Europe and other external factors. At home, a program of government subsidies for new-car buyers will end in September. Many warn that the recovery could slow this fall. Aware of this risk, the BOJ plans to keep monetary policy loose.
Source: The Nikkei July 2
TOKYO (Nikkei)--Toyota Tsusho Corp., Itochu Corp. and other major trading Firms are plotting full-scale expansions into the apparel market in China.
Toyota Tsusho plans to develop a nationwide chain of stores stocking a number of its own brands of clothing and accessories for young consumers. After forming franchise agreements with local retailers, it will open three stores this month in Guangzhou and elsewhere. Directly run sites will be launched in Shanghai and Beijing this fiscal year, with outlets to number 300 and sales expected to hit 30 billion yen in three years.
Itochu is opening Renoma stores in China with a local partner.
Through equity-method affiliate Shanshan Group Co., Itochu will debut an Elle store by autumn. It has acquired rights to use the Elle trademark in China from its French owner and plans to have 160 directly run and franchise stores in five years.
The trading house owns the Japanese rights to 150 American, European and other brands. Once it has secured rights to use those lines in China, it will gradually develop stores to carry them.
Sojitz Corp. will debut its Asian strategic brand, McGregor Classic, this fall, with stores to open in Beijing and Shanghai from 2013. And Marubeni Corp. will team up with T-shirt manufacturer Yamaki Co. to venture into the apparel wholesale business catering to Chinese retailers.
The Chinese apparel market is estimated to be worth 17 trillion yen this year. Rising income levels and more fashion-conscious consumers are boosting demand for mid- and high-priced clothing.
Up to now, China has been a production base for trading houses. But lackluster domestic demand and increased flexibility in the yuan has made it an attractive consumer market.
Source : The Nikkei July 2
TOKYO (NQN)--Nippon Steel Corp. said Monday it will establish a factory in Vietnam to manufacture steel products for infrastructure projects in emerging Asian markets, in cooperation with Sumitomo Corp., Vietnam's state-run steelmaker and others.
The plant will be Nippon Steel's first overseas production site to make construction-use steel materials. The steelmaker already has an automotive steel plant in Thailand, and factories to produce beverage cans in Thailand and Indonesia.
The consortium set up a joint venture called Nippon Steel Pipe Vietnam Co. on June 18 at an industrial complex in southern Vietnam.Nippon Steel owns a leading 51% stake in the unit, which is capitalized at 15 million dollars, and sent an official to head it.
Japanese steel trading company Metal One Corp. holds a 20% stake, Vietnam Steel Corp. -- the country's sole state-owned steel firm - owns 10%, and four Japanese firms, including Sumitomo and Marubeni-Itochu Steel Inc., own 4.75% each.
The partners will invest a total of 31 million dollars to build a factory on a 100,000-sq.-meter site. The factory will churn out 5,000 tons a month of steel piles, sheet piles and other products used for constructing ports, roads and railroads.
Construction will begin in October, and the factory will be up and running in May 2011.
Source: The Nikkei July 5
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th