Tuesday, April 17, 2012

Japan - Stock Market and Economy

 

Introduction-

 
Stock Market
 
2008
The trading for the year 2008 closed with Nikkei at 8859.56. Shares of auto leader Toyota Motor Corp. lost half of their value in 2008.
 
Tokyo Stock Exchange President Atsushi Saito said at the closeing ceremony of the year's trading, "In the long history of mankind, there have been harsh economic slumps, but they have been overcome... We want to make the next year a year in which we will move towards the future in a more constructive manner."
 
In terms points, the Nikkei suffered a steeper fall in 1990 with a fall of 15,067 points (38.71%) of its value.
(Source: Mint, 31 Dec 2008, p.15)
 
 
 
Economy
 
2008
 
Japanese exports fell sharply in November 2008 to all areas but those to the US were worst-hit, plunging 33.8% - also a record drop. Shipments to the European Union were down 30.8% while those to China fell 24.5%. Exports to the rest of Asia declined 26.7%. The rising yen resulted in  export levels down 26.7% from a year earlier.
 
The government has forecast zero growth in the year ending March 2010.
 
Source:
 
 

The Japanese Economy -

 

The economy of Japan is the second largest economy in the world, after the United States at around US$4.5 trillion in terms of nominal GDP  and third after the United States and China when adjusted for purchasing power parity. The workers of Japan rank 18th in the world in GDP per hour worked as of 2006.

Japan's economy is highly efficient, highly diversified, and very competitive, being ranked 19th among 111 countries on productivity. Japan has a well-educated work force and high levels of savings and investment rates.

For three decades, Japan's overall real economic growth had been spectacular: a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s.

Sliding stock and real estate prices marked the end of the "Japanese asset price bubble" of the late 1980s, and ushered in a decade of stagnant economic growth. These problems may have been exacerbated by domestic policies intended to wring speculative excesses from the stock and real estate markets. Real GDP in Japan grew at an average of roughly 1.5% yearly between 1991-1999, compared to growth in the 1980s of about 4% per year. Growth in Japan throughout the 1990s was slower than growth in other major industrial nations, and the same as in France and Germany. Government efforts to revive economic growth have met with little success and were further hampered in 2000 to 2001 by the slowing of the global economy. However, GDP per worker has increased steadily even through the nineties, growing at 2.0% per year in 2003 and 2004, and 2.8 percent in 2005. Unlike previous recovery trends, domestic consumption has been the dominant factor in leading the growth. As predicted, the economic recovery continued in 2006 and 2007.
 

 

Macroeconomic trends-

 

Year

Gross Domestic Product

US Dollar Exchange

Inflation Index (2000=100)

1955

8,369,500

￥360.00

1960

16,009,700

￥360.00

1965

32,866,000

￥360.00

1970

73,344,900

￥360.00

1975

148,327,100

￥297.26

1980

240,707,315

￥225.82

75

1985

323,541,300

￥236.79

86

1990

440,124,900

￥144.15

92

1995

493,271,700

￥122.78

98

2000

501,068,100

￥107.73

100

2005

502,905,400

￥110.01

97
 
 

 

http://en.wikipedia.org/wiki/Economy_of_Japan

Economic Indicators-

GDP (purchasing power parity):


$4.348 trillion (2008 est.)
$4.365 trillion (2007)
$4.263 trillion (2006)
note: data are in 2008 US dollars

GDP (official exchange rate):


$4.844 trillion (2008 est.)

GDP - real growth rate:


-0.4% (2008 est.)
2.4% (2007 est.)
2% (2006 est.)

GDP - per capita (PPP):


$34,200 (2008 est.)
$34,300 (2007 est.)
$33,400 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector:


agriculture: 1.4%
industry: 26.4%
services: 72.1% (2008 est.)

Labor force:


66.15 million (2008 est.)

Labor force - by occupation:


agriculture: 4.4%
industry: 27.9%
services: 66.4% (2005)

Unemployment rate:


4.2% (2008 est.)

Household income or consumption by percentage share:


lowest 10%: 4.8%
highest 10%: 21.7% (1993)

Distribution of family income - Gini index:


38.1 (2002)

Investment (gross fixed):


22.5% of GDP (2008 est.)

Budget:


revenues: $1.672 trillion
expenditures: $1.823 trillion (2008 est.)

Public debt:


170.4% of GDP (2008 est.)

Inflation rate (consumer prices):


1.8% (2008 est.)

Central bank discount rate:


0.1% (19 December 2008)

Commercial bank prime lending rate:


1.68% (November 2008)

Stock of money:


$4.37 trillion (31 December 2007)

Stock of quasi money:


$4.783 trillion (31 December 2007)

Stock of domestic credit:


$9.653 trillion (31 December 2007)

Market value of publicly traded shares:


$4.453 trillion (31 December 2007)

Agriculture - products:


rice, sugar beets, vegetables, fruit; pork, poultry, dairy products, eggs; fish

Industries:


among world's largest and technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods

Industrial production growth rate:


0.5% (2008 est.)

Electricity - production:


1.195 trillion kWh (2007 est.)

Electricity - consumption:


1.08 trillion kWh (2006 est.)

Electricity - exports:


0 kWh (2007 est.)

Electricity - imports:


0 kWh (2007 est.)

Oil - production:


132,400 bbl/day (2007)

Oil - consumption:


5.007 million bbl/day (2007)

Oil - exports:


240,000 bbl/day (2007)

Oil - imports:


5.032 million bbl/day (2007)

Oil - proved reserves:


44.12 million bbl (1 January 2008 est.)

Natural gas - production:


3.729 billion cu m (2007 est.)

Natural gas - consumption:


100.3 billion cu m (2007 est.)

Natural gas - exports:


0 cu m (2007 est.)

Natural gas - imports:


95.62 billion cu m (2007 est.)

Natural gas - proved reserves:


20.9 billion cu m (1 January 2008 est.)

Current account balance:


$187.8 billion (2008 est.)

Exports:


$776.8 billion f.o.b. (2008 est.)

Exports - commodities:


transport equipment, motor vehicles, semiconductors, electrical machinery, chemicals

Exports - partners:


US 20.4%, China 15.3%, South Korea 7.6%, Taiwan 6.3%, Hong Kong 5.4% (2007)

Imports:


$696.2 billion f.o.b. (2008 est.)

Imports - commodities:


machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials

Imports - partners:


China 20.5%, US 11.6%, Saudi Arabia 5.7%, UAE 5.2%, Australia 5%, South Korea 4.4%, Indonesia 4.2% (2007)

Reserves of foreign exchange and gold:


$954.1 billion (31 December 2007 est.)

Debt - external:


$1.492 trillion (30 June 2007)

Stock of direct foreign investment - at home:


$139.7 billion (2008 est.)

Stock of direct foreign investment - abroad:


$597 billion (2008 est.)

Exchange rates:


yen (JPY) per US dollar - 103.58 (2008 est.), 117.99 (2007), 116.18 (2006), 110.22 (2005), 108.19 (2004)

 https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html#Econ
 
 

Inflation rate-

 Japan Inflation Rate
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009 0.00 -0.10 -0.30 -0.10                
2008 0.70 1.00 1.20 0.80 1.30 2.00 2.30 2.10 2.10 1.70 1.00 0.40
2007 0.00 -0.20 -0.10 0.00 0.00 -0.20 0.00 -0.20 -0.20 0.30 0.60 0.70
2006 0.00 -0.10 -0.20 -0.10 0.10 0.50 0.30 0.90 0.60 0.40 0.30 0.30
 
 

Interest Rates-

Japan Interest Rate
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009 0.10 0.10 0.10 0.10 0.10              
2008 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.30 0.30 0.10
2007 0.25 0.25 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
2006     0.00 0.00 0.00 0.00 0.00 0.25 0.25 0.25 0.25 0.25
 
 

Industrial Production-

 
Japan Industrial Production
 
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009 -31.00 -38.40 -34.20 -31.20                
2008 2.20 5.10 -0.70 1.90 1.10 0.00 2.40 -6.90 0.20 -7.10 -16.60 -20.80
2007 4.00 3.10 2.00 2.20 3.80 1.10 3.20 4.40 0.80 4.70 2.90 0.80
2006 2.20 3.90 3.10 3.60 3.90 5.00 5.10 5.90 5.20 7.40 4.90 4.80
 
 

Current Account-

 
 Japan Current Account
Year Mar Jun Sep Dec Total
2009 1485.6       2429.7
2008 2902.4 471.6 1564.6 162.9 16379.2
2007 3287.9 1516.4 2925.9 1589.1 24793.8
2006 2422.3 1024.5 2052.9 1781.6 19848.8
 
 

Balance of Trade-

 
Japan Balance of Trade
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
2009 -956.0 82.7 10.3 69.0                 -794.1
2008 -89.8 935.8 1096.2 458.7 341.1 104.1 81.9 -314.2 91.0 -75.2 -227.5 -322.2 2079.9
2007 1.8 961.5 1602.6 903.1 395.5 1246.0 682.0 743.6 1608.7 999.4 784.4 866.9 10795.5
2006 -353.5 909.8 939.2 610.6 356.3 799.7 851.1 191.8 1006.8 613.4 908.0 1109.7 7942.7
 
 

Unemployment Rate-

 
Japan Unemployment Rate
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009 4.10 4.40 4.80 5.00                
2008 3.80 3.90 3.80 4.00 4.00 4.10 4.00 4.10 4.00 3.80 4.00 4.30
2007 4.00 4.00 4.00 3.90 3.80 3.70 3.60 3.80 4.00 4.00 3.80 3.70
2006 4.40 4.10 4.10 4.10 4.10 4.30 4.10 4.10 4.10 4.00 4.00 4.00
 
 
 

Japanese Stock Market-

 

Nikkei 225 ,is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the Nihon Keizai Shimbun (Nikkei) newspaper since 1950. It is a price-weighted average (the unit is yen), and the components are reviewed once a year. Currently, the Nikkei is the most widely quoted average of Japanese equities, similar to the Dow Jones Industrial Average. In fact, it was known as the "Nikkei Dow Jones Stock Average" from 1975 to 1985.

The Nikkei 225 began to be calculated on September 7, 1950, retroactively calculated back to May 16, 1949.

The Nikkei 225 Futures, introduced at Singapore Exchange (SGX) in 1986, the Osaka Securities Exchange (OSE) in 1988, Chicago Mercantile Exchange (CME) in 1990, is now an internationally recognized futures index.

The Nikkei average hit its all-time high on December 29,1989 when it reached an intra-day high of 38,957.44 before closing at 38,915.87. Its high for the 21st century stands just above 18,300 points.

The value of Nikkei 225 index over the last 40 years is as shown below-

 

 

http://en.wikipedia.org/wiki/Nikkei_225

Nikkei 225 index has plunged from a value of around 14000 to 10000 in the last one year.

 
 
The Nikkei 300 Index is a capitalization-weighted index of major equity securities traded on the first section of the Tokyo Stock Exchange. The index was developed with a base value of 100 as of October 1, 1982. The index uses listed shares in the index calculation.
 
 
 
Nikkei 500 is another index used in the Tokyo Stock Exchange.
 
 
Original Knol - Knol 608
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