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.



Comments are closed.