Yen Falls Toward Seven-Year Low as Industrial Production Shrinks

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The yen declined toward a seven-year low against the dollar after government reports showed industrial production shrank in November and inflation slowed.

Japan™s currency fell versus all of its 16 major counterparts as the data added to speculation the central bank will introduce more stimulus measures to try to raise the economy out of recession. The dollar headed for a second weekly gain versus the euro after data this week showed the U.S. economy accelerated last quarter, giving the Federal Reserve more reason to raise interest rates next year. European financial markets are shut today for a holiday.

The yen fell 0.2 percent to 120.37 per dollar at 9:18 a.m. in Tokyo, extending this week™s decline to 0.7 percent. The currency depreciated to 121.85 percent on Dec. 8, the least since July 2007. The yen dropped 0.1 percent to 146.91 per euro. The dollar gained 0.2 percent to $1.2207 per euro, having advanced 0.2 percent this week.

Source : Bloomberg

Japan Shares Swing as Investors Weigh Data on Inflation, Output

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Japanese shares fluctuated, with the Topix index headed for a weekly advance, as investors assessed data on inflation, industrial output and retail sales. Shippers rose while tiremakers fell.

The Topix added less than 0.1 percent to 1,421.54 as of 9:02 a.m. in Tokyo, after retreating as much as 0.1 percent. The measure is poised for a 0.9 percent gain this week. The Nikkei 225 Stock Average slipped 0.1 percent to 17,790.85 today. The yen dropped 0.2 percent to 120.39 per dollar after gaining 0.3 percent yesterday.

Japan™s inflation rate slowed for a fourth straight month, adding to central bank chief Haruhiko Kuroda™s challenges in reflating the world™s third-biggest economy. Consumer prices excluding fresh food rose 2.7 percent in November from a year earlier, the statistics bureau said today, down from 2.9 percent the previous month and matching the median projection of economists surveyed by Bloomberg.

Industrial production fell 0.6 percent in November from the previous month, data showed today. Analysts surveyed by Bloomberg had expected a 0.8 percent advance. Retail sales unexpectedly dropped 0.3 percent on the month.

Source : Bloomberg

Japan’s Inflation Slows for Fourth Month in Challenge to Kuroda

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Japan™s inflation rate slowed for a fourth straight month, adding to central bank chief Haruhiko Kuroda™s challenges in reflating the world™s third-biggest economy.

Consumer prices excluding fresh food increased 2.7 percent in November from a year earlier, the statistics bureau said today, matching a median projection in a Bloomberg News survey of economists. Stripped of the effect of April™s sales-tax increase, core inflation -- the Bank of Japan™s key measure -- was 0.7 percent.

Tumbling oil prices could push Japan™s inflation as low as 0.5 percent by the middle of next year, according to economists at NLI Research Institute and Dai-ichi Life Research Institute. Over the longer term, Kuroda said yesterday, cheaper oil spells good news for the economy that will increase consumer prices as the central bank aims for a 2 percent target.

Energy prices dropped 1.2 percent from a month earlier, according to today™s data. The price of Dubai crude oil -- a benchmark for Middle East supply to Asia -- has lost about a half of its value in the past year.

Source : Bloomberg