Monday, 30 November 2009

Stocks in Japan rise but growth in manufacturing slows

Japanese stocks rebounded strongly today.

Japanese stocks rose, driving the Topix index up by the most in almost seven months, on speculation the impact from Dubai World’s request to delay debt payments will be limited...

The Topix index rallied 3.6 percent to 839.94 at the close in Tokyo, the sharpest advance since May 7. The Nikkei 225 Stock Average added 2.9 percent to 9,345.55, the steepest climb since Aug. 24.

However, the Japanese stock market has been on a declining trend since August and now a report indicates that Japan's economic recovery has also lost a bit of momentum. From AFP/CNA today:

Japan's factory output last month rose slightly but short of market expectations, data showed Monday as the government announced stimulus spending to boost a recovery threatened by the strong yen.

Industrial output in the world's second largest economy edged up 0.5 per cent from September, an eighth straight monthly gain but well below an average market forecast of a 2.5 per cent rise, data from the industry ministry showed...

Industrial production is expected to rise 3.3 per cent month-on-month in November and by a further 1.0 per cent in December, according to the manufacturers' own forecasts, the ministry said.

Further evidence of some slowing in Japanese manufacturing came from another report showing that the Nomura/JMMA Japan Manufacturing Purchasing Managers Index (PMI) fell to 52.3 in November from 54.3 in October.

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