| Jul 03 | Japan still a bridge too far on many fronts (China Daily) |
 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.
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| Jul 03 | Bank of Japan exit strategy debate heats up (Reuters) |
| 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. |
| Jul 03 | Major nations should back dollar as key currency: Japan (Reuters) |
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| Jul 03 | If Paul Krugman were Japanese (NewsWeek) |
| 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. |
| Jul 03 | Japan economy 'still sluggish' (Straits Times) |
 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.
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| Jul 02 | 'Super solar loans' green way to stoke economy (Asahi) |
| 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. |
| Jul 02 | Business sentiment improves slightly (Asahi) |
| 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. |
| Jul 02 | Roadside land values fall across nation for the 1st time in 4 years (Asahi) |
| 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. |
| Jul 02 | Cabinet OKs record budget ceiling (Asahi) |
| 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. |
| Jul 01 | Japan's debt financing program carries risks (Forbes) |
| 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. |
| Jul 01 | Japanese yen: Under pressure to appreciate (rediff.com) |
| 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. |
| Jul 01 | Big manufacturers' sentiment improves for 1st time in 2.5 years: BOJ (AP) |
| 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. |
| Jul 01 | Unemployment in Japan will be above 6% by August (SeekingAlpha) |
| 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. |
| Jul 01 | Japan's average land prices fall for 1st time in 4 years (AP) |
| 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. |
| Jul 01 | At long last, Korea and Japan return to trade talks (joins.com) |
| 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. |
| Jun 30 | Japan's long-term employment system worth looking at again: white paper (AP) |
| 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. |
| Jun 30 | Japan job woes deepen but consumption points up (Forbes) |
| 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. |
| Jun 30 | Japanese household spending rises 0.3% in May (AP) |
| 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. |
| Jun 30 | Japan's two paced economy (engadget.com) |
| 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. |
| Jun 29 | Japanese workers to take 7.8 days of summer break (AP) |
| 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. |
| Jun 29 | Japan's bizarre new mortgage crisis (Reuters) |
 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.
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| Jun 29 | Sluggish growth, weak job market ahead (Reuters) |
| 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. |
| Jun 28 | The only bonus you'll get this summer is the sun (Japan Times) |
| 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. |
| Jun 27 | Japan's Yosano: Economy could grow in 2010/11 (Reuters) |
| 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. |
| Jun 27 | Will deflation spoil Japan's economic recovery? (BusinessWeek) |
| 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. |
| Jun 26 | Japan slides to deflation as prices fall record 1.1% (Bloomberg) |
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| Jun 25 | Japan exports fall but economists say recovery on track (news.com.au) |
| Japanese exports fell slightly more sharply in May than the previous month on sluggish demand for cars, steel and electronic parts, but economists maintained that sales of Japanese goods overseas remained in a recovery trend. Any pickup in foreign demand would be great news for an export-reliant Japanese economy that is in the middle of crawling out of its worst recession since World War II. Yet, the longer-term prospects of exports remain murky. |
| Jun 25 | Public pensions expected to provide 34% of salaries (Yomiuri) |
| Japan's public pensions are projected to provide recipients with the second lowest payout as a percentage of their salary of any of the Organization for Economic Cooperation and Development's 30 member nations, according to a report released Tuesday on the OECD's pension systems. |
| Jun 24 | The Recession in Japan, Part 1: Lost Decade Revisited (istockanalyst.com) |
| Japan entered the global financial and economic crisis in a far more precarious situation than the world's other developed countries. In 1990, Japan suffered the collapse of a massive housing and equities bubble that triggered an extended period of financial distress and economic malaise - the famous "lost decade" - which actually persisted through 2003. |
| Jun 24 | Japan logs biggest trade surplus in year (AFP) |
 Japan has announced its biggest monthly trade surplus in a year, supporting hopes that the world's second largest economy is slowly recovering from its worst recession on record.
Exports exceeded imports for a fourth straight month, giving a vital boost to an economy that is heavily dependent on overseas demand, government data showed.
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| Jun 24 | OECD eyes 0.7% growth in Japanese economy for 2010 (AP) |
| The Organization for Economic Cooperation and Development projected Wednesday a deeper contraction in the Japanese economy in 2009 than earlier forecast but said the global economy is recovering from the worst recession since World War II, with Japan expected to grow a real 0.7 percent in 2010 from this year. |
| Jun 22 | Added-value vouchers prove a hit (Yomiuri) |
| There has been a growing trend this year for municipalities and commercial and industrial bodies to issue added-value vouchers. The trend is linked to the government's flat-sum cash benefit program, which provides 12,000 yen per person and 20,000 yen for those aged 65 and older and 18 and younger as a pump-priming measure. The vouchers have been issued with the aim of encouraging people to spend the cash at local shops instead of depositing it in banks. |
| Jun 21 | Japan big manufacturer mood improves in Apr-Jun (guardian.co.uk) |
 Big Japanese manufacturers grew much less pessimistic about business conditions in the three months to June compared with the previous quarter, a government survey showed, in another sign the world's No.2 economy is emerging from its worst recession in decades.
The survey bodes well for the closely watched Bank of Japan tankan survey due out next week, which is expected to rebound from a record low hit in the first quarter when factory output and exports plunged as global demand evaporated.
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| Jun 21 | Japan to extend yen loans to 4 Asian nations to fight climate change (AP) |
| The government has decided to extend yen loans to four Asian countries to assist their efforts to fight global warming, government sources said Sunday. Under its Climate Change Program Loans, the government will provide tens of billions of yen in loans to Bangladesh, the Philippines, Thailand and Vietnam, the sources said. |
| Jun 21 | Is the land of the rising sun about to emerge from the dark at last? (independent.co.uk) |
 At first, second or even third glance, Japan is not a likely candidate for the private investor looking to make a quick killing or enjoy steady long-term growth. However, a more hopeful story is emerging that there could be a recovery under way, and if investors get in on the ground floor, they could make a decent profit.
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| Jun 21 | How deflation could make Japan a cashless society (intellasia.net) |
| Unorthodox, untried and, said one Bank of Tokyo Mitsubishi strategist, "in the realms of economic science fiction", the recommendation has nevertheless begun floating around Tokyo's corridors of power and economists have described Japan as particularly suitable as a testing ground. The search for more unconventional economic policies continues, despite the recent surge in the Nikkei 225 index. The market may be reflecting soaring Chinese investment , rising consumer confidence and other cheerful data but economists see few long-term beacons of hope for Japan. |
| Jun 20 | Outlook on the economy (Asahi) |
| The government on Wednesday effectively proclaimed that the economy has bottomed out, citing signs of recovery in industrial production and exports. No doubt many people felt the announcement is divorced from reality. |
| Jun 20 | June Tankan Preview: Set to Reconfirm Recovery, Yet Sees Business Plans Lowered (Morgan Stanley) |
| We expect the headline to pick up fairly dramatically from the worst reading on record in the last survey. Meanwhile, for F3/10 capex we foresee sharp downward revisions by large enterprises for the first time since F3/03 for the June Tankan, resulting in a double-digit decline. Large companies are also set to lower their F3/10 recurring profit targets. Yet even then, corporate profit plans will likely remain more bullish than our guarded top-down forecast, leaving room for further downward revisions. |
| Jun 20 | Department store sales fall 12% (Japan Times) |
| Department store sales slipped 12.3 percent in May from a year earlier on a same-store basis, down for the 15th month in a row, an industry group said Friday. |
| Jun 19 | Japan as global trouble shooter? (Straits Times) |
 With China likely to soon overtake Japan as the world's number two economy, Tokyo should follow a new growth path as a 'trouble shooter' on climate and other global issues, a government report said on Friday.
'The Japanese economy's share in the world has been declining... Japan's status as 'the world's second largest economy' is drawing to an end,' the Ministry of Economy, Trade and Industry admitted in an annual report.
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| Jun 19 | Trade deals starts 'new era' in Japan-Philippine ties: Arroyo (AFP) |
| Philippine President Gloria Arroyo on Thursday hailed "a new era of economic relations" with Japan after a trade deal took effect last year, and called for more Japanese investment in her country. Japan, meanwhile, pledged fresh low-interest loans worth up to 45 billion yen (470 million dollars) for transportation infrastructure and rural projects, plus one billion yen in grant aid for disaster relief, officials said. |
| Jun 19 | The Upside to Japan's Recession (Wall Street Journal) |
| The media is full of bad news from Japan, the worst-performing economy in the developed world during this recession. But there is upside to Japan's weakness. The downturn has given corporations an excuse to restructure and prepare for the eventual upturn -- and both macro- and micro-economic forces are aligning to help boost this recovery. |
| Jun 18 | Worst is past for economy (Asahi) |
| The government on Wednesday effectively declared that the economy has bottomed out, citing signs of recovery in industrial production and exports. In its monthly economic report for June, the government dropped the word "worsening" for the first time since December in its assessment for the state of the economy. |
| Jun 18 | Household financial assets lowest since '04 (Japan Times) |
| The outstanding balance of financial assets held by households at the end of March hit its lowest level in five years, due largely to stock market declines blamed on the global financial crisis, the Bank of Japan said Wednesday. |
| Jun 17 | Fitch to keep Japan's debt rating even as fiscal goal abandoned (Bloomberg) |
| Fitch Ratings Ltd. said it will maintain Japan’s sovereign debt rating at AA- even after the government abandoned its goal of balancing the budget by 2011. |
| Jun 17 | Will U.S. housing go the way of Japan? (BusinessWeek) |
 There are similarities between Japan and the U.S.: Both countries enjoyed (suffered?) housing bubbles that were fed by cheap money and lots of leverage. And the central bankers in both the U.S. and Japan pushed short-term interest rates down to ridiculously low levels to both enable existing borrowers to refinance, and to stimulate new business activity.
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| Jun 16 | BOJ raises economic assessment again, holds key rate at 0.1% (AP) |
| The Bank of Japan on Tuesday upgraded its assessment of the Japanese economy for the second straight month, confirming that the nation's deepest postwar recession is easing. The BOJ's eight-member Policy Board also voted unanimously to leave the key interest rate unchanged at 0.1 percent at a two-day policy meeting. The central bank last cut its target rate for unsecured overnight call money in December, lowering the rate from 0.3 percent. |
| Jun 16 | BOJ to set 'exit strategy' from stimulus steps by end of Sept. (AP) |
| Bank of Japan Governor Masaaki Shirakawa said Tuesday that the central bank will map out ways by the end of September to end extraordinary measures it has taken to shore up the recession-mired economy. |
| Jun 16 | Japan's Faith in Strong Dollar Policy Is Laughable (SeekingAlpha) |
| Comments such as those made by Japanese Finance Minister Kaoru Yosano as reported by Blooomberg on the subject of the attractiveness of long-term U.S. debt make you wonder where the Pacific island nation might be 60 years from now, independence-wise, as they seem to have made little progress since the end of World War II. |
| Jun 15 | Japan should abandon Koizumi policies, union chief Takagi says (Bloomberg) |
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