Japanese Data Releases and Higher Sovereign Debt Yields Dominate Last Trading Day of Christmas Week
December 27, 2013
Japanese core CPI inflation climbed 0.3 percentage points to 1.2% in November. Total CPI inflation rose to 1.5%. Tokyo consumer prices in December dipped 0.2% on month and rose by 0.9% from December 2012. Core Tokyo inflation at end-2013 was 0.7%.
Industrial production in Japan edged up 0.1% in November after a 2.8% advance in October. The 12-month increase of 5.0% plus predicted monthly increases in December and January were enough to convince METI officials that the trend remains upward.
Japanese motor vehicle production was 10.2% greater last month than a year earlier.
Japan’s jobless rate remained at 4.0% in November. Employment was 0.8% higher than a year earlier, and the job offers ratio improved marginally.
Labor cash earnings in Japan recorded a 0.5% on-year advance in November.
Japanese real household spending rose 0.1% on month and 0.2% on year in November. Real income was 1.1% less than in November 2012, however.
Also in Japan, retail sales increased 1.9% on month in November and accelerated to a 12-month increase of 4.0% from 2.4%.
Japan’s manufacturing purchasing managers index exceeded 50 for a tenth straight time in December and, at 55.2, was at an 89-month high.
Japanese stock and bond transactions in the week of December 21 generated a 684 billion yen net capital inflow.
The dollar is mixed today, with losses of 0.9% against the Swissie, 0.6% versus the euro, 0.2% against the kiwi, and 0.1% relative to the yuan but gains of 0.5% versus the loonie and 0.1% relative to the Australian dollar.
Japan’s Nikkei closed unchanged, and U.S. equities are steady after rising earlier this week. The German Dax and British Ftse are 0.9% and 0.7% firmer.
The ten-year British gilt yields jumped nine basis points to 3.07%. The German bund yield rose two basis points. The comparable Treasury and German bunds are unchanged.
Oil moved up 1.0% and past the $100 per barrel threshold. Gold is 0.3% firmer.
Producer prices fell 0.6% in the year to November in France, rose 1.0% on year in Singapore, and fell 0.7% on year in Greece.
In December, business sentiment rose in South Korea but remained steady in Finland.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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