Nikkei rises after jobless data, Panasonic plunges

(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]