Do More With Reuters
Partner Services

Nikkei rises after jobless data, Panasonic plunges

Fri Nov 28, 2008 7:17am IST
 
Email | Print | | Single Page
[-] Text [+]

(Updates to midmorning)

By Rika Otsuka

TOKYO, Nov 28 (Reuters) - Japan's Nikkei average edged up 0.6 percent on Friday after an unexpected fall in the unemployment rate in October, but a plunge in Panasonic Corp (6752.T: Quote, Profile, Research) limited the advance for the broader market.

Shipping firms such as Kawasaki Kaisha Kisen (9107.T: Quote, Profile, Research) and construction machinery companies such as Komatsu Ltd (6301.T: Quote, Profile, Research) led gains, extending advances made a day earlier on hopes that a interest rate cut by China would help its economy.

Panasonic, the world's No.1 plasma TV maker, dived nearly 11 percent after cutting its annual net profit forecast by 90 percent and announcing plans to restructure as the global financial crisis dampens sales of TVs and other electronics. [ID:nLR132843]

"Panasonic's earnings forecasts underscored the deteriorating health of the economy," said Terushi Hirotama, head of trading at Ichiyoshi Securities.

"Until recently, investors had believed that Panasonic could withstand the downturn. But now, investors are saying 'Panasonic. You too?'"

Japan's seasonally adjusted unemployment rate unexpectedly fell to 3.7 percent in October, down from 4.0 percent in September, government data showed on Friday. [JPUNR=ECI]

But other data showed Japanese industrial production dropped sharply in October, prompting warnings that Japan's recession will be even deeper and longer than previously thought. [ID:nT133784]  Continued...

special coverage

Budget 2009
Budget 2009

The government presents the budget for the full fiscal year 2009/10 on July 6.  Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

SHOWCASE

Photo
Is the budget over-rated for personal finance?

Expectations are high given the outcome in the general elections.  Commentary 

 
Nilekani: Infosys' loss or govt’s gain?
Nilekani: Infosys' loss or govt’s gain?

Nandan Nilekani has resigned from the Infosys board to join the government.  Commentary | Slideshow 

 
Launched

Tata Motors announced the launch of Jaguar and Land Rover vehicles in India.  Slideshow | Video 

 
Satyam
The new Satyam

Stay updated with the developments at Satyam.  Full Coverage 

 
M&A Review
M&A Review

A review of mergers and acquisitions.  Full Coverage 

 
Financial Turmoil Timeline
Financial Turmoil Timeline

A round-up of measures taken by the U.S Federal Reserve since June 2007 to tackle the financial crisis.  Full Coverage