Japan Industrial Production Jumps to Record High on Auto, Semiconductor Output.
Japan's industrial production rose 1.6 percent in October to a record high, boosted by output of semiconductors and autos, the trade ministry said Thursday.
Industrial production climbed a seasonally adjusted 1.6 percent from a month earlier, according to the Ministry of Economy, Trade and Industry. Production dropped 1.4 percent in September after jumping 3.5 percent in August.
The index of industrial output climbed to 112.1 against a base of 100 for the year 2000. That's the highest the index has recorded since the government began tracking relevant production data in 1953, the ministry said. October's rise was in line with the average forecast of economists polled by Dow Jones Newswires and was underpinned by a healthy output of automobiles and electric parts for export.
Still, analysts are skeptical whether Japan's output can continue growing amid recent sluggishness in the housing construction sector. Japan's housing starts tanked 44 percent on year in September, their sharpest fall on record. A revision to Japan's Building Standards Law has forced construction companies to wait months for approvals.
The housing slowdown could hurt business investment, which in turn could hurt industrial output and the broader economy, analysts say.
Asian Markets Rally After Wall Street
Asian stocks rallied Thursday, tracking an overnight surge on Wall Street, amid a brightening outlook for the U.S. economy -- a key export market for Asian companies. Investors took heart after the Dow Jones industrial average mustered its biggest two-day point gain in five years after a Federal Reserve official hinted that the central bank may lower interest rates again.
Hong Kong's Hang Seng Index soared more than 4 percent to 28,4621.59 points by midday. A rate cut in the United States usually means lower Hong Kong rates as the local dollar is pegged to the U.S. dollar. Those hopes boosted property companies, which benefit from lower interest rates. Ports-to-property conglomerate Wharf Holdings was the best performer, up 6.5 percent at HK$43.10.
In Tokyo, investors also took cues from a weaker yen to buy auto and banking shares. The Nikkei 225 index was up 2.6 percent at 15,548.73 by early afternoon. A weaker yen helps the country's exporters by increasing their foreign revenues when they are converted back to yen. The dollar was trading at 110.26 yen in Tokyo, up from 109.97 yen late Wednesday in New York.
Markets in Singapore, Australia and South Korea were also up sharply.
Sentiment on Wall Street has improved as companies that made losing bets on subprime mortgages, such as Citigroup Inc. and Freddie Mac, are coming up with ways to raise cash. The market was clearly optimistic that at least some of the damage from the months-long credit crisis was finally being mitigated.
The Dow soared 331.01, or 2.55 percent, to 13,289.45 on Wednesday, adding to the blue chip index's 215 point gain on Tuesday and giving the market's best known indicator its largest two-day point gain since Oct. 11, 2002.
Japan's industrial production rose 1.6 percent in October to a record high, boosted by output of semiconductors and autos, the trade ministry said Thursday.
Industrial production climbed a seasonally adjusted 1.6 percent from a month earlier, according to the Ministry of Economy, Trade and Industry. Production dropped 1.4 percent in September after jumping 3.5 percent in August.
The index of industrial output climbed to 112.1 against a base of 100 for the year 2000. That's the highest the index has recorded since the government began tracking relevant production data in 1953, the ministry said. October's rise was in line with the average forecast of economists polled by Dow Jones Newswires and was underpinned by a healthy output of automobiles and electric parts for export.
Still, analysts are skeptical whether Japan's output can continue growing amid recent sluggishness in the housing construction sector. Japan's housing starts tanked 44 percent on year in September, their sharpest fall on record. A revision to Japan's Building Standards Law has forced construction companies to wait months for approvals.
The housing slowdown could hurt business investment, which in turn could hurt industrial output and the broader economy, analysts say.
Asian Markets Rally After Wall Street
Asian stocks rallied Thursday, tracking an overnight surge on Wall Street, amid a brightening outlook for the U.S. economy -- a key export market for Asian companies. Investors took heart after the Dow Jones industrial average mustered its biggest two-day point gain in five years after a Federal Reserve official hinted that the central bank may lower interest rates again.
Hong Kong's Hang Seng Index soared more than 4 percent to 28,4621.59 points by midday. A rate cut in the United States usually means lower Hong Kong rates as the local dollar is pegged to the U.S. dollar. Those hopes boosted property companies, which benefit from lower interest rates. Ports-to-property conglomerate Wharf Holdings was the best performer, up 6.5 percent at HK$43.10.
In Tokyo, investors also took cues from a weaker yen to buy auto and banking shares. The Nikkei 225 index was up 2.6 percent at 15,548.73 by early afternoon. A weaker yen helps the country's exporters by increasing their foreign revenues when they are converted back to yen. The dollar was trading at 110.26 yen in Tokyo, up from 109.97 yen late Wednesday in New York.
Markets in Singapore, Australia and South Korea were also up sharply.
Sentiment on Wall Street has improved as companies that made losing bets on subprime mortgages, such as Citigroup Inc. and Freddie Mac, are coming up with ways to raise cash. The market was clearly optimistic that at least some of the damage from the months-long credit crisis was finally being mitigated.
The Dow soared 331.01, or 2.55 percent, to 13,289.45 on Wednesday, adding to the blue chip index's 215 point gain on Tuesday and giving the market's best known indicator its largest two-day point gain since Oct. 11, 2002.
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