TOKYO (Kyodo)--Japanese exports in July rose 23.5 percent from a year earlier but the pace of expansion narrowed for the fifth straight month, government data showed Wednesday, adding to concerns that the nation's export-oriented economy may slow further if the yen continues to rise.
Exports totaled 5,982.80 billion yen in July, increasing for the eighth straight month on the back of firm demand for automobiles, while imports climbed 15.7 percent, the seventh consecutive month of growth, to 5,178.60 billion yen, according to the Finance Ministry's preliminary data. The trade balance in July came to a surplus of 804.20 billion yen, up around 2.2-fold from the same period last year, logging a surplus for the 16th consecutive month.
Exports to the United States were up 25.9 percent to 972.23 billion yen for the seventh straight monthly rise, and Japan's trade balance with the country came to a surplus of 472.30 billion yen, up 42.5 percent
Exports to Europe grew 13.3 percent to 632.59 billion yen, bringing Japan's trade surplus with the region to 133.59 billion yen, up 29.8 percent. Exports to Asia rose 23.8 percent to 3,343.01 billion yen, but the pace of growth slowed since earlier this year. Japan saw a 22.7 percent rise in exports to China in July with the value totaling 1,156.89 billion yen, and its trade balance with the country returned to a surplus for the first time in four months. The figures are measured on a customs-cleared basis before adjustments for seasonal factors.
Source: The Nikkei Aug. 25
TOKYO (Kyodo)--The government on Tuesday submitted to a Democratic Party of Japan panel an outline of its plan to expand subsidies to farmers of six crops, including wheat and soybeans, from fiscal 2011 starting next April in addition to rice farmers, and provide extra subsidies depending on farmers' efforts to improve the harvest and quality of the crops.
The government intends to provide growers of rice and the six other crops with 15,000 yen per 1,000 square meters of farmland to help cover the gap between production costs and sales prices, according to the outline. The state has offered the subsidies for rice farmers as a model project for the current fiscal year.
The plan, presented by the Agriculture, Forestry and Fisheries Ministry to an agriculture policy task force of the ruling DPJ, also said extra subsidies will be given to farmers who cultivate farmland in mountainous regions or give consideration to environmental conservation.
But the ministry has given up providing extra subsidies for farmland expansion or consolidation projects. Rice growers will be paid subsidies on condition that they take part in production cuts to meet falling consumption. The ministry plans to earmark 910 billion yen for the new farm subsidy plan in its budget request for fiscal 2011.
Source: The Nikkei August 25
TOKYO (Nikkei)--The effective corporate tax rate should be trimmed by five percentage points as part of fiscal 2011 tax reform, the Ministry of Economy, Trade and Industry said Tuesday.
METI presented this and other proposals to the ruling Democratic Party of Japan, heeding calls from the business community, which has long lobbied to have the current 40% rate reduced. The ministry seeks an initial five-point cut, followed by a subsequent reduction that would bring Japan's rate on a par with international levels at around 25-30%.
But a five-point reduction translates to an annual tax revenue loss of roughly 1 trillion yen. METI will focus on finding alternative funding sources, including broadening the tax base. Meanwhile, to fight global warming, METI is proposing an increase in oil and coal taxes. It calls for using the resulting revenue to fund anti-global warming measures.
In its fiscal 2011 budget request, METI wants to earmark funds for a new subsidy program to support companies that manufacture energy-saving products such as LED lighting.
The ministry will finalize its draft proposals for fiscal 2011 tax reform guidelines and budget requests at a meeting Monday.
Source: The Nikkei Aug. 25
TOKYO (Dow Jones)--Japan's core consumer price index fell 1.1% from a year earlier in July, government data showed Friday, in another sign that the country's economy remains mired in deflation.
The fall marked the 17th straight month of decline and was exactly in line with the median forecast for a 1.1% drop in a poll of economists by Dow Jones Newswires and the Nikkei. The core CPI, which excludes volatile fresh food prices, slid 1.0% in June.
The latest data confirm prolonged deflationary pressure in Japan, further fueling concerns over sustainability of current economic recovery. Some analysts expect deflation to linger as the yen stays strong with the outlook for the U.S. and European economies uncertain, dragging on Japan's export-driven economy and reducing the prices of oil, food, metals and other commodities that the country buys from overseas.
If consumer prices show little sign of rising in the near term, and if it appears difficult to achieve the government's goal of ending deflation in the fiscal year starting April 2011, expectations for the Bank of Japan to take additional monetary easing measures--which are already high amid recent steep yen rise--will likely increase even more.
Core CPI for the Tokyo metropolitan area--a leading indicator of national trends--declined 1.1% in August, the Ministry of Internal Affairs and Communications said, slightly better than an expected 1.2% drop.
Source:The Nikkei Aug. 27
TOKYO (Nikkei)--In what could be seen as a sign of prolonged deflation, prices declined for a larger group of food and daily goods last month as some stores cut prices on summer products to attract customers.
Prices experienced year-on-year declines for 52 of 60 products sold at supermarkets, according to a quarterly point-of-sale study by Nikkei Inc.
Amid sluggish consumption, retail prices have continued to fall since the financial crisis erupted in the autumn of 2008. Despite expectations that this summer's heat wave would boost spending on certain items, some stores have been forced to offer discounts to draw customers in.
Chirashi Report Co., which gathers information on time-limited discounts, found that prices hit post-crisis lows in July for 27 of the 45 products it tracks, including shampoo. Prices were down from a year earlier for 39.
The Japanese economy has been slowing, with real gross domestic product growing an annualized 0.4% in the April-June quarter. Manufacturers increased sales incentives last month in response to slumping sales, an official at a major supermarket said. Prices could fall further, given that some retailers, including Ito-Yokado Co., began offering discounts this month to reflect the stronger yen.
Source: The Nikkei Aug. 24
TOKYO (Nikkei)--Japan and China have agreed to work together to improve the latter's distribution system by unifying container standards and making packaging materials tax-exempt. The aim is to facilitate trade between the two countries and make it easier for Japanese manufacturers and trading houses to expand operations there.
Minister of Economy, Trade and Industry Masayuki Naoshima will meet with Zhang Ping, chairman of China's National Development and Reform Commission, on Saturday to discuss the matter. The two nations will begin joint studies on ways to simplify customs procedures in China, including the introduction of a pilot digitization program. In addition, they will discuss eliminating customs duties that China imposes on containers and palettes in order to allow for the reuse of such materials.
This would be done first in a model district to monitor how the move affects import and export volume, as well as the environment. Naoshima will also meet with Chinese Commerce Minister Chen Deming to request the lifting of China's sales restrictions on foreign tobacco and magazines, as well as tougher clampdowns on knockoffs. In exchange, Japan will offer its expertise in distribution and retail business management.
Source:The Nikkei Aug. 26
TOKYO (Nikkei)--Game developers are releasing more products in the April-September period in a shift away from a lopsided earnings structure that left them reliant on the second half for the bulk of their profits. The firms tend to launch a slew of new products during the year-end shopping season. But they are now moving to release such offerings as toys and gaming machines at other times so that their earnings and cash flows do not fluctuate as much.
As a result of such efforts, Namco Bandai Holdings Inc. (7832) generated 27% of its consolidated operating profit projection for the full fiscal year during the April-June quarter. It launched profitable card games and yo-yo products last quarter, which helped it post a quarterly operating profit of 2.9 billion yen after an operating loss of 2.7 billion yen a year earlier.
Sega Sammy Holdings Inc. (6460) introduced eight new pachinko and slot machines during the April-June quarter, five more than the same quarter a year earlier. It plans to release 25 titles in the full fiscal year, the same as the previous year. It logged a quarterly operating profit of 14.9 billion yen, compared with an operating loss of 7.8 billion yen a year earlier, generating 37% of its projected earnings for the full fiscal year.
Source: The Nikkei Aug. 24
TOKYO (NQN)--Japan's domestic passenger car production expanded 15% year on year to 826,000 vehicles in July, according to preliminary data released Friday by eight major automakers.
Output was buoyed by government tax breaks and subsidies for purchases of environmentally friendly cars and by a 21% increase in exports.
Overseas production climbed 19% to 1.032 million cars, with both figures topping those at home.
Nissan Motor Co.'s (7201) overseas output rose 24% to 230,000 vehicles, a record for July, as the automaker shifted production of its popular March subcompact from Japan to Thailand.
Mazda Motor Corp. (7261), which began turning out passenger vehicles in Thailand last autumn, saw its overseas production jump 43% from a year earlier.
Honda Motor Co.'s (7267) overseas output climbed 26%, thanks mainly to increases in North America and Asia.
However, Mazda's domestic production rose only 3% last month, as exports decreased for the first time in eight months.
With the government's subsidy program ending in September, automakers will probably curb production from October to keep pace with demand.
The yen's recent strength may further prompt them to shift production abroad
Source: The Nikkei Aug. 27
TOKYO (Nikkei)--Global trade in environmental products, including solar power panels and rechargeable batteries, has almost doubled since 2004, according to a report released Tuesday by the Japan External Trade Organization.
Such trade reached 182.5 billion dollars, or roughly 15.5 trillion yen, in 2009, the report from the trade group, also called JETRO, showed. Although worldwide trade sank 23% on the year to 12.29 trillion dollars, or around 1,045 trillion yen, last year due to the fallout from financial turmoil, global exports of environmental products slipped just 16%. Compared with five years earlier, such trade more than doubled in 2008 and grew 75% last year.
Amid growing steps to prevent global warming, countries are ratcheting up exports of renewable energy devices, including solar power panels, rechargeable batteries and steam turbines, along with other products such as waste-disposal boilers and water- and sewage-control products.
China, in particular, is ramping up shipments. Thanks to ballooning exports by Suntech Power Holdings Co., Yingli Group Co. and other manufacturers of photovoltaic equipment, Chinese shipments of environmental products skyrocketed 400% over the five years. It is now closing in on No. 1 environmental products exporter Germany.
JETRO based its data on a list of 43 environmental products subject to World Trade Organization negotiations for tariff cuts. It used International Monetary Fund data and customs records from various nations.
Source:The Nikkei Aug. 25
TOKYO (Nikkei)--Large companies would face individual restrictions on their emissions of greenhouse gases under the government's proposed carbon trading plan, according to a draft obtained Sunday by The Nikkei.
Companies would be able to lower their own required reductions by helping small and midsize businesses and developing countries pollute less. The burden will also be lightened for industries in international competition.
The original climate change bill containing the carbon trading scheme was scrapped when the Diet went into recess this June. The government plans to resurrect the bill when the Diet reconvenes this autumn. How the scheme will actually work is supposed to be decided within a year after the law takes effect. The Environment Ministry began hammering out the details in April.
An expert panel will take up the draft Tuesday. The government aims to have a final version ready by the end of the year.
Under the draft, only large companies crossing certain emissions thresholds would have to cap output of greenhouse gases. Higher caps would be allowed for those in direct competition with foreign rivals or in pollution-intensive industries. Steelmakers and chemical companies are seen as likely candidates. The business community has voiced strong concerns about the economic impact of restricting emissions.
Firms would be able to partly offset their own emissions with credits earned by helping developing countries cut pollution, such as through the United Nations' Clean Development Mechanism, or by supporting reductions at smaller businesses.
As for power companies, it has yet to be decided whether the utilities themselves or their customers will bear the responsibility for emissions cuts.
Source: The Nikkei Aug. 30
DA NANG, Vietnam (Nikkei)--Japan and five Southeast Asian nations on Thursday agreed to carry out action plans aimed at revitalizing industries along the Mekong River through cooperative, cross-border efforts. Japan is hoping to increase its clout in the Mekong region and benefit from infrastructure exports to the area.
At the second Mekong-Japan Economic Ministers meeting held in Da Nang, in central Vietnam, Economy Minister Masayuki Naoshima met with his counterparts from Vietnam, Thailand, Cambodia, Laos and Myanmar. The first meeting was held last autumn.
Japan has played a key role in drawing up action plans for the Mekong-Japan Economic and Industrial Cooperation Initiative, under which Japan will help the Mekong nations carry out local infrastructure projects, as well as upgrade construction standards for a highway slated to traverse the region from east to west
Source:The Nikkei Aug. 26
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th