Ex-Japan Official: Euro Pessimism Overdone - Wall Street Journal

TOKYO—The euro is undervalued against both the dollar and yen, said a former top Japanese currency official, arguing that speculation about a Greek default or German abandonment of the currency has become overly pessimistic, given European officials' determination to retain the euro zone.

"I believe the euro will recuperate its value as European officials muddle through the debt woes," said Makoto Utsumi, who was vice finance minister for international affairs between 1989 and 1991.

Jonathan Ernst/Reuters Former Japanese currency official Makoto Utsumi, right, with Bank of France Governor Christian Noyer in Washington last month

Known to be a close friend of Bank of France Governor Christian Noyer, a member of the European Central Bank's board of governors, Mr. Utsumi said in a recent interview that it was unlikely Germany or Greece would opt out of the common currency. "Staying on the team is in their national interest, and officials there are very much aware of that," he said.

Jean-Claude Juncker, head of the Eurogroup of regional finance ministers, on Tuesday said "everything will be done" to avoid a Greek default, though the group decided to postpone its decision regarding a bailout.

Mr. Utsumi, now president and chief executive officer of Japan Credit Rating Agency, estimated that if Germany were to return to its former currency, the mark, its value would rise by 30%, hitting the nation's exporters hard. Athens would have the opposite problem if it gave up the euro: The value of its currency would fall sharply, making it impossible to clear its debts, mostly denominated in euros.

The former official said Tokyo, seeking to help calm the region's debt storm, will likely buy more bonds issued by the European bailout fund. Japan has purchased 20% of the bonds issued in the European Financial Stability Facility's three offerings this year.

As of 0930GMT, the euro was at $1.3176 and ¥100.99, from $1.3175 and ¥100.96 in New York Monday. Mr. Utsumi declined to make specific currency forecasts, but suggested it may take some more time before the euro starts its recovery as he said "there is no clear-cut solutions to the debt problem."

Mr. Utsumi also said the yen is overvalued, but that because currency markets are driven mainly by factors in the U.S. and Europe there isn't much Japanese authorities can do to stem its rise. He said Japan should focus on maximizing the benefits of having a strong currency, such as by buying overseas resources.

Write to Takashi Mochizuki at takashi.mochizuki@dowjones.com

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Japan's Seven & i Brushes Off Quake Impact - Wall Street Journal

TOKYO—Reflecting a broad recovery in Japanese consumer sentiment since the March 11 earthquake, the nation's largest retailer by revenue on Tuesday reported a 4.1% increase in net profit for the June-August quarter and raised its earnings outlook for the full fiscal year.

Seven & i Holdings Co., which runs 7-Eleven convenience stores in Japan and the U.S. as well as Seibu and Sogo department stores and big-box Ito-Yokado stores, reported a net profit of ¥39.69 billion ($517.8 million) during the period, compared with a year-earlier profit of ¥38.13 billion.

The company said the ...

TOKYO—Reflecting a broad recovery in Japanese consumer sentiment since the March 11 earthquake, the nation's largest retailer by revenue on Tuesday reported a 4.1% increase in net profit for the June-August quarter and raised its earnings outlook for the full fiscal year.

Seven & i Holdings Co., which runs 7-Eleven convenience stores in Japan and the U.S. as well as Seibu and Sogo department stores and big-box Ito-Yokado stores, reported a net profit of ¥39.69 billion ($517.8 million) during the period, compared with a year-earlier profit of ¥38.13 billion.

The company said the ...

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Japan Nuclear Agency Adds to Mistrust - Wall Street Journal

TOKYO—An independent panel advising Japan's Ministry of Economy, Trade and Industry confirmed Friday that the ministry's nuclear watchdog was involved in attempts by utilities to manipulate public opinion in favor of nuclear power, a conclusion likely to reinforce public mistrust in the nuclear industry and to raise further hurdles for the restart of idled reactors.

The ministry also announced later in the day that it has suspended former Nuclear and Industrial Safety Agency spokesman Hidehiko Nishiyama for one month after finding he engaged in inappropriate sexual conduct with a female staffer during working hours at the height ...

TOKYO—An independent panel advising Japan's Ministry of Economy, Trade and Industry confirmed Friday that the ministry's nuclear watchdog was involved in attempts by utilities to manipulate public opinion in favor of nuclear power, a conclusion likely to reinforce public mistrust in the nuclear industry and to raise further hurdles for the restart of idled reactors.

The ministry also announced later in the day that it has suspended former Nuclear and Industrial Safety Agency spokesman Hidehiko Nishiyama for one month after finding he engaged in inappropriate sexual conduct with a female staffer during working hours at the height ...

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Japan Raps Barclays Capital - Wall Street Journal

BUSINESSSEPTEMBER 30, 2011, 8:36 A.M. ET

TOKYO—Barclays Capital Japan Ltd. said Friday it has been ordered by the Financial Services Agency to suspend some of its operations for 10 days due to a technical glitch on its order system.

Japan's financial watchdog ordered the Japanese unit of London-based Barclays PLC to suspend its proprietary desk from receiving equity orders from affiliated companies between Oct. 11 and Oct. 24. The FSA also imposed a business improvement order on the ...

TOKYO—Barclays Capital Japan Ltd. said Friday it has been ordered by the Financial Services Agency to suspend some of its operations for 10 days due to a technical glitch on its order system.

Japan's financial watchdog ordered the Japanese unit of London-based Barclays PLC to suspend its proprietary desk from receiving equity orders from affiliated companies between Oct. 11 and Oct. 24. The FSA also imposed a business improvement order on the ...

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Japan Output Continues Recovery, but Outlook Murky - Wall Street Journal

TOKYO—Japanese industrial production continued to bounce back after the devastating impact of the March 11 earthquake and tsunami, rising for the fifth-straight month in August as the transportation, steel and electronic component sectors regained their footing.

WSJ's Andrew Monahan discusses Japan's industrial production figures, up for the 5th straight month in August. Global economic conditions, however, could prove challenging for Japan's economy in the coming months. Photo: REUTERS/Kim Kyung-Hoon

But the outlook for production over the next few months remains murky as the yen's strength, the financial crisis in the euro zone and a slowdown in the U.S. economy pose a threat to Japan's fragile recovery.

Output rose a seasonally adjusted 0.8% in August from the previous month, data from the Ministry of Economy, Trade and Industry showed on Friday.

While the ministry said industrial production has now almost completely recovered from the effects of the earthquake and tsunami, the result was below a median forecast for a 1.5% rise in a survey of economists by Dow Jones Newswires and the Nikkei. In July, production rose 0.4% from the previous month.

In a sign there may be a bumpy road ahead for production in the coming months, manufacturers polled by the ministry expect their orders to fall 2.5% in September, and climb 3.8% in October.

Manufacturers have now largely overcome post-quake production disruptions and the threat of power shortages due to the Fukushima Daiichi nuclear crisis and analysts are now focusing on how Japan will cope with the economic turmoil overseas as well as the yen's appreciation.

"External factors affected production negatively...the yen's strength was also a negative factor," Japan Research Institute chief economist Hidehiko Fujii said about Friday's output data. Still, the outlook for the Japanese economy may not change much, he added.

Other data released on Friday painted a similar picture of Japan's economy recovering from the impact of the March 11 disasters.

Japan's unemployment rate fell to 4.3% in August from 4.7% in July, improving for the first time in three months. But an official briefing reporters on the data noted that the drop in the figure does not necessarily mean an improvement in the labor market.

Meanwhile, the nation's core consumer price index rose for the second-straight month in August, partly due to an increase in energy prices.

The nation's core CPI rose 0.2% from a year earlier in the month, data from the Ministry of Internal Affairs and Communication showed, higher than the median forecast for a 0.1% gain in a poll of economists surveyed by Dow Jones and the Nikkei.

Core CPI for the Tokyo metropolitan area—an early indicator of price trends for the rest of Japan—fell 0.1% on year in September. In August, it declined 0.2%.

Write to Andrew Monahan at andrew.monahan@dowjones.net

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Citigroup Under Scrutiny in Japan - Wall Street Journal

TOKYO—Japan's Financial Services Agency is nearing the completion of an investigation into the local arm of U.S. financial giant Citigroup Inc. on suspicion of lax compliance in a number of areas and will likely issue sanctions as early as October, people familiar with the matter said Friday.

In what could trigger the third major sanction of Citi in seven years, the banking watchdog has found that the bank didn't provide sufficient disclosure about financial products such as investment trusts when selling them to customers and failed to adequately screen customers for product suitability, the people said.

Additionally, the FSA is ...

TOKYO—Japan's Financial Services Agency is nearing the completion of an investigation into the local arm of U.S. financial giant Citigroup Inc. on suspicion of lax compliance in a number of areas and will likely issue sanctions as early as October, people familiar with the matter said Friday.

In what could trigger the third major sanction of Citi in seven years, the banking watchdog has found that the bank didn't provide sufficient disclosure about financial products such as investment trusts when selling them to customers and failed to adequately screen customers for product suitability, the people said.

Additionally, the FSA is ...

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Nuclear Power Fuels Japan Election - Wall Street Journal

A local election in southern Japan pits a pro-nuclear-energy incumbent against an anti-nuclear-energy candidate in the first big electoral test for how far the country will go in pulling the plug on nuclear power. WSJ's James Simms explains.

KAMINOSEKI, Japan—This small fishing village has become the next front in Japan's battle over nuclear power, with an anti-nuke protester threatening to oust the pro-nuke mayor in an election Sunday.

At stake: the fate of a long-planned reactor for which ground-breaking is supposed to take place next year.

More broadly, the defeat of a mayor whose economic development strategy has centered around a controversial power plant could fuel the country's increasingly influential anti-nuclear movement.

"What's often said is that we need nuclear-power money to run Kaminoseki," challenger Sadao Yamato, 61 years old, told a few dozen supporters as he formally kicked off his campaign Tuesday. Standing on a beer crate at his campaign office in front of the Murotsu port, he went on, "Should we sacrifice the precious livelihoods and lives of our villagers for money?"

Mr. Yamato's answer is clear. His election poster, which shows him posed in front of solar panels and wearing a white polo shirt, is captioned "Graduate from Nuclear Power!"

James Simms/The Wall Street Journal Pro-nuclear Mayor Shigemi Kashiwabara, wearing a tie, versus anti-nuclear challenger Sadao Yamato, in a polo shirt in front of solar panels

Activists have been fighting Chugoku Electric Power Co.'s plan for a Kaminoseki plant since it was first broached in 1982, and all eight mayoral elections since then have been fought mainly over the issue. But all eight times, the pro-nuclear camp won.

This weekend's contest is the third between incumbent Shigemi Kashiwabara and a Yamato family member. Mr. Kashiwabara first took office in 2003 by besting Mr. Yamato, 59% to 41%. Four years ago, he beat Mr. Yamato's son, Takashi Yamato, 67% to 33%.

But that was before the March 11 Fukushima Daiichi accident eroded support for nuclear power all over the country. Polls show large majorities of the public want to curb Japan's dependence on atomic energy—and, at a minimum, halt construction of new reactors like the one planned in Kaminoseki. On Monday, tens of thousands of protesters flooded the streets of Tokyo to demand an end to nuclear power in Japan.

With the national government feeble and divided, the future of nuclear power now is being shaped more in communities where reactors are located or planned. Of the reactors down for maintenance at the time of the accident or shut down since, just one, which was undergoing test operations in March, has restarted. The restart of the rest has been stymied by local opposition, amid community fears that without stricter safety controls, another Fukushima-style accident is possible.

Still, many long-struggling towns continue to see the atom as crucial for economic development. In the first local post-Fukushima election to center around nuclear energy, a governor who strongly backs building a reactor handily won re-election in June in impoverished northern Aomori prefecture.

Kaminoseki's mayoral election is the second such test. The community was once strongly pro-nuclear, but local newspapers say the race appears closer this time.

In Kaminoseki, as in Aomori, the financial incentives are great, because of declining and aging populations and shrinking local economies and tax bases—issues that much of rural Japan faces.

Since the nuclear project was first proposed some three decades ago, the population has halved, to just 3,534, and the proportion of those age 65 or more has jumped to nearly half from a fifth. Because of the planned reactors, nuclear-related funding sources provide almost one-fourth of the village's nearly $60 million budget now, and Chugoku Electric has donated $32 million to village coffers since 2007.

A billboard on the island where the reactor is planned shows a couple and their baby having a picnic, the proposed twin reactors in the background. Set up by promoters of the plant, it reads, "A Vibrant Village With Nuclear Electricity."

James Simms/The Wall Street Journal Pro-plant billboard reads 'A Vibrant Village With Nuclear Electricity.'

Tsutomu Asami heads the Kaminoseki commerce and industrial cooperative, and owns a fish wholesaler. He said the local economy has been hurt by a lack of work for younger people, fewer people to take over fishing jobs and a drop in the catches of prized fish like snapper and flounder. "Nuclear power is the only option," he said.

Chugoku Electric, after three decades of struggle to clear political and legal hurdles, finally appeared close to breaking ground for the plant before the Fukushima Daiichi accident. The utility began full-time work at the site on Feb. 21, when a Yamaguchi District Court issued an order preventing demonstrators from interfering with the project. But protesters continued working to block construction, converging on the site from land and sea.

Little progress had been made by March 11, when the tsunami crippled the Fukushima Daiichi plant. Five days later, the governor of Yamaguchi prefecture asked the utility to suspend site-preparation work. But Chugoku Electric says it plans to go forward with construction, a resolve the utility's president repeated at a news conference just last Friday.

A supportive mayor is crucial for those plans.

Mayor Kashiwabara, 62, hasn't revoked his backing for the reactor. But he does appear to be playing it down in his campaign. His official poster, showing him in a dark suit, carries the slogan "Connecting to the Future"—but no mention of nuclear energy.

In one of his opening rallies, speaking to several dozen supporters, Mr. Kashiwabara didn't argue for or against the plant, saying the decision ultimately rests with the national government in Tokyo. He seemed to suggest that if the plug does get pulled, the community should get compensation.

"The main thing is that I want the government to acknowledge the 30 years of anguish" villagers have suffered over the nuclear issue, Mr. Kashiwabara said.

—Chester Dawson
contributed to this article.

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BOJ's Miyao Highlights Risks for Japan Recovery - Wall Street Journal

HAKODATE—Bank of Japan policy board member Ryuzo Miyao said on Wednesday that the central bank will take action if necessary to stop downside risks from undermining the nation's economic recovery, bolstering the view that the BOJ may soon take further easing steps to counter the impact of the strong yen and slowing overseas demand.

"I hope the powerful recovery, mainly in production, will continue after the autumn, but there are several uneasy factors," which include the possibility of slower overseas demand, the yen's stubborn uptrend, potentially higher electricity costs and expectations for prolonged deflation, Mr. Miyao said in a speech to business leaders in Hakodate, northern Japan.

Issei Kato/Reuters Bank of Japan board member Ryuzo Miyao speaks to the media during a news conference at the BOJ headquarters in Tokyo in 2010.

"If judged necessary after carefully examining economic and price conditions, including foreign exchange moves, overseas economies as well as local economies, we will take appropriate steps," Mr. Miyao said at a post-speech press conference, stressing that the BOJ's policy doesn't depend only on foreign exchange rates.

Mr. Miyao's cautious remarks will likely add to speculation that the BOJ will soon pursue additional monetary easing measures. Although the bank's policy board decided to stand pat at its latest meeting last week, many economists expect the BOJ to take action within the coming months.

Given that the pace of the U.S. economic recovery is "significantly" slowing and risks surrounding European sovereign debt problems are increasing, overseas demand could weaken more than initially expected, causing problems for Japan's export-dependant economy, Mr. Miyao said.

Mr. Miyao also voiced concern that the stubbornly strong yen may further undermine the country's industrial production base, pushing companies to shift production overseas and eventually weighing on growth.

Still, he said data released so far haven't shown that the high yen has caused a sharp deterioration in business sentiment among domestic firms.

Fears over the health of the global economy have pushed the yen—regarded as a safe-haven—to record highs. After falling to an all-time low of ¥75.94 last month, the dollar stood at around ¥76.90 as of 3.28pm local time on Wednesday.

In the face of the strong yen, the BOJ in August increased the size of its special fund, which includes asset purchases and low-cost loans, by ¥10 trillion to ¥50 trillion, in tandem with government intervention in the currency markets.

The central bank has been buying a variety of financial assets—from government and corporate debt to exchange-traded funds and real estate investment trusts—in a bid to lower interest rates and risk premiums.

Though he didn't specify any preference on policy options, he said current interest-rate levels are "most appropriate" at this point. The BOJ's key policy rate is currently in a 0.0%-0.1% range, while interest on excessive reserves is at 0.1%.

Write to Megumi Fujikawa at megumi.fujikawa@dowjones.com

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Big Japan Firms More Upbeat Despite Yen - Wall Street Journal

TOKYO—Big Japanese companies turned upbeat on business conditions in the third quarter, a government survey showed, with the nation's recovery from the March 11 disasters boosting sentiment despite the strong yen and threat of a global economic slowdown.

An index measuring the mood of big companies in a joint survey by the Finance Ministry and Cabinet Office improved to plus 6.6 in the July-September period, from minus 22.0 in the previous quarter.

The result was better than the plus 4.4 that companies had forecast for the quarter in the previous April-June survey. The survey, released Monday, defines big companies as having ¥1 billion ($13 million) or more in capital.

"The post-quake economic recovery seems stronger than expected," in part as companies succeeded in quickly restoring disrupted supply chains, said Mizuho Research and Consulting senior economist Norio Miyagawa.

The survey is seen as an early indicator of how the Bank of Japan's quarterly tankan survey of business sentiment, due next month, may turn out.

But economists said business optimism may yet be blunted by the soaring yen as it makes Japanese products less competitive overseas and eats into earnings repatriated to Japan. Slowing growth in the U.S. and other key overseas markets, as well as financial market turbulence stemming from concerns over European sovereign debt, are also complicating the outlook.

In a sign of increased cautiousness, big companies said they expect the index to stand at plus 8.1 in October-December, down from a previously forecast plus 11.3, before falling back to plus 6.0 in the January-March quarter.

The index measures the percentage of companies saying business conditions are better than in the previous period, minus the percentage of firms saying they are worse. Monday's survey polled companies on their assessment of conditions as of Aug. 15.

The dollar dropped to a post-World War II record low at ¥75.94 on Aug. 19.

Meanwhile, small and medium-sized companies, which account for the bulk of the Japanese economy, were still pessimistic in the July-September period, but less than before, the survey showed.

The index for such companies was still solidly in negative territory at minus 22.2 in July-September, compared with minus 41.1 in the previous quarter. The companies expect the index to come in at minus 11.5 in October-December, and minus 10.6 in January-March.

Other data released Monday underscored the continued fragility of Japan's economic recovery. The tertiary industrial activity index was down 0.1% on month in July, a report from the Ministry of Economy, Trade and Industry showed.

Write to Andrew Monahan at andrew.monahan@dowjones.net

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Edano Picked as Japan's New Industry Minister - Wall Street Journal

TOKYO—Japanese Prime Minister Yoshihiko Noda on Monday attempted to draw a line under a scandal that has rocked his fledgling administration, appointing popular lawmaker and former government spokesman Yukio Edano as the new industry minister after his predecessor made embarrassing remarks about the country's nuclear crisis.

Mr. Edano, 47, will succeed Yoshio Hachiro, who quit on Saturday only eight days into the job after he referred to the evacuated areas around the stricken Fukushima Daiichi nuclear plant as "a town of death" and allegedly joked about radiation with reporters.

The remarks were sharply criticized by opposition parties and were an unwelcome distraction for Mr. Noda as he attempts to focus on repairing the government's finances and moving ahead with the reconstruction of the quake-hit northeast.

Acting swiftly to try to contain the damage, Mr. Noda immediately accepted Mr. Hachiro's resignation and made a public apology on Sunday, the six-month anniversary of the devastating earthquake and tsunami that triggered the nation's worst-ever nuclear accident.

Moving on from the scandal is seen as crucial for the Noda government as ministers are set to face on Tuesday their first parliamentary session since the change of administration to discuss a supplementary budget for quake reconstruction.

Any lingering whiff of scandal could allow opposition parties to renew their criticism that the ruling Democratic Party of Japan is inexperienced and incompetent—a line they pursued against Mr. Noda's predecessor Naoto Kan—at a time when the new premier is looking to build consensus and clear legislative gridlock.

Support from the opposition-controlled upper house is seen as necessary for the government to smoothly pass the budget bill as well as legislation to fix Japan's social security system and proposed tax increases.

Mr. Hachiro's resignation seems like deja-vu for the ruling Democratic Party of Japan. Two months ago, reconstruction minister Ryu Matsumoto quit after remarks about the disaster-hit areas that were deemed offensive.

Former Chief Cabinet Secretary Edano was the public face of the government in the aftermath of the March 11 disasters and enjoyed broad public approval for his apparently tireless approach to holding regular briefings on live television. In recent public opinion polls, he was frequently mentioned as one of the most desirable candidates for the country's next prime minister.

The choice of Mr. Edano as industry minister—a portfolio that includes the country's nuclear power industry—also reflects the need for an experienced hand to deal with the task of rebuilding public trust in the government's energy policy after the Fukushima Daiichi disaster.

The government must tread a course between widespread public concern about the safety of nuclear power following the disaster and the need to restart idled reactors to prevent power shortages next year.

Write to Mitsuru Obe at mitsuru.obe@dowjones.com

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Big Japan Firms More Upbeat Despite Yen - Wall Street Journal

TOKYO—Big Japanese firms turned upbeat on business conditions in the third quarter, a government survey showed on Monday, with the nation's recovery from the March 11 disasters boosting sentiment despite the strong yen and looming threat of global economic slowdown.

An index measuring the mood of big companies in a joint survey by the Finance Ministry and Cabinet Office improved to plus 6.6 in the July-September period, from minus 22.0 in the previous quarter.

The result was better than the plus 4.4 that firms ...

TOKYO—Big Japanese firms turned upbeat on business conditions in the third quarter, a government survey showed on Monday, with the nation's recovery from the March 11 disasters boosting sentiment despite the strong yen and looming threat of global economic slowdown.

An index measuring the mood of big companies in a joint survey by the Finance Ministry and Cabinet Office improved to plus 6.6 in the July-September period, from minus 22.0 in the previous quarter.

The result was better than the plus 4.4 that firms ...

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Japan Power List: Suzuki Roars In - Wall Street Journal (blog)

ReutersSuzuki Motor Corp Chairman and Chief Executive Osamu Suzuki speaks at a news conference in Tokyo on Sept. 12.

Osamu Suzuki topped Japan’s corporate newsmaker rankings for the seven days ending Sep. 12, according to data compiled by Dow Jones Insight and edited by The Wall Street Journal.

But not for the first time in the Japan Power List, not entirely for happy reasons: the chairman of auto maker Suzuki Motor Corp. rode to the top of the chart because of a fairly acrimonious bust-up with Germany’s Volkswagen AG over future strategy and control.

After less than two years, a partnership involving a nearly $3 billion investment by the German auto maker in Suzuki – giving it just under 20% of the Japanese firm – has unraveled to the point where Suzuki unilaterally pulled the plug and asked VW to sell its holdings. But VW appears in no rush to do so, meaning Mr. Suzuki may linger in the corporate newsmaker rankings for some time.

Rounding out the top three were more familiar faces: Nissan Motor Corp.’s Carlos Ghosn and Sony Corp.’s Howard Stringer, rarely far from the top.

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Six Months: Counting the Cost - Wall Street Journal (blog)

The March 11 disasters have taken a heavy toll on Japan, in every conceivable way. In other posts, JRT looks at the impact on survivors’ lives and challenges for the future. Below is an update on the aftermath of the earthquake, tsunami and nuclear crisis as seen in the simplest of measures – numbers.

ReutersA survivor walks through debris caused by the March 11 earthquake and tsunami, in Rikuzentakata, Iwate prefecture on March 18.

Dead, Missing, Homeless:

19,902 – number of people confirmed dead or missing from the March 11 earthquake and tsunami, as of Sept. 9, according to the National Police Agency.

82,945 – total number of evacuees living in temporary homes, evacuation centers and makeshift housing such as hotels or staying with relatives and friends, as of Aug. 25, according to the Cabinet Office.

6,819 – the number of victims still living in evacuation centers, such as schools that were converted into shelters shortly after the disasters, as of Aug. 25, according to the Cabinet Office.

Movement:

626 – the number of earthquakes in Japan measuring magnitude 5.0 or higher between March 11 and Aug. 31, according to the Japan Meteorological Agency. In the same period a year earlier, the number was 61.

5.8 meters – the distance that the observation point Oshika in Ishiniomaki, Miyagi prefecture, has shifted east since the earthquake as of the end of July, according to the Geospatial Information Authority of Japan. Prior to the earthquake, the Japanese archipelago crawled westward a few centimeters a year.

5 – number of consecutive months the Osaka region, which encompasses Kyoto, Hyogo and Nara prefectures, recorded a net population influx, the longest monthly growth trend recorded since 1970 when the western city hosted the world exposition. Since March, all told roughly 10,000 more people moved into the area than left it as of the end of July, according to the Internal Affairs Ministry.

Nuclear Effect:

23 – number of times the government ordered bans on distribution of certain produce from select prefectures due to radiation contamination as of Sept. 10, according to the Ministry of Health.

26 – the number of different types of food items, including vegetables, fish and beef, at various points banned from distribution due to radioactive contamination, as named in orders released by the Ministry of Health as of Sept. 10.

380 tons – the amount of beef from cattle suspected of being fed rice straw with high concentrations of radioactive cesium the government purchased, according to the Nikkei business daily.

Financial Cost:

Y16.9 trillion – estimated cost of damage from the natural disasters, about twice the amount from the 1995 Kobe earthquake, according to the Cabinet Office.

Y351.9 billion – amount allocated in the supplemental budget to clear the debris. Amount of debris in the three worst-hit prefectures – 21.8 trillion tons.

Y120,000 – maximum monthly compensation Tokyo Power Electric Co. is to pay each evacuee between March and August for the anguish they suffered because they had to flee from their homes.

Y112.2 billion – total compensation Tepco has paid on a provisional basis to evacuees, farmers, companies and others affected by the accident as of Aug. 30.

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Japan's Azumi Says PM Not Responsible For Trade Min Resignation - Wall Street Journal

SEPTEMBER 10, 2011, 9:53 A.M. ET

MARSEILLE, France (Dow Jones)--Japan's finance minister came to the defense of Prime Minister Yoshihiko Noda Saturday, saying he should not be held accountable for the abrupt resignation earlier in the day of the nation's trade and industry minister over gaffes about nuclear issues.

The comment from new Finance Minister Jun Azumi followed media reports that Economy, Trade and Industry Minister Yoshio Hachiro stepped down to take responsibility ...

MARSEILLE, France (Dow Jones)--Japan's finance minister came to the defense of Prime Minister Yoshihiko Noda Saturday, saying he should not be held accountable for the abrupt resignation earlier in the day of the nation's trade and industry minister over gaffes about nuclear issues.

The comment from new Finance Minister Jun Azumi followed media reports that Economy, Trade and Industry Minister Yoshio Hachiro stepped down to take responsibility ...

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Japan Economy Worse Than Reported - Wall Street Journal

TOKYO—The Japanese economy contracted more severely than previously reported in the April-June period, data released Friday showed, with firms cutting back on capital spending at a faster pace in the wake of the March 11 earthquake and tsunami.

The revised gross domestic product shrank at a price-adjusted annual pace of 2.1% in April-June from the previous quarter, the Cabinet Office said, compared with a preliminary 1.3% contraction announced three weeks ago.

The figure matched expectations from a survey of economists by Dow Jones Newswires and the Nikkei.

Despite the downward revision, analysts remain optimistic about growth in Japan over the coming quarters as post-quake reconstruction is expected to provide a shot in the arm for the nation's economy. A government survey of 40 economists released Thursday showed that, on average, annualized GDP is expected to expand by 4.95% in the July-September period, followed by 2.63% growth in the October-December quarter.

Some analysts also see brighter economic prospects for next year. Mitsumaru Kumagai, chief economist at Daiwa Institute of Research, said the government's expected third extra budget, which is currently being compiled, should have a positive long-term impact on economic growth.

But the strong yen and weakening overseas demand are likely to remain as downside risks, they say.

"There has been an expectation for a strong recovery in the second half of the year, but given concerns for a global economic slowdown and a strong yen, concerns are rising that the recovery may not be as strong as previously expected," said Toshihiro Nagahama, senior economist at Dai-ichi Life Research Institute.

For the GDP data released Friday, a major reason for the downward revision was a reduction in capital spending, which recorded a 0.9% decline in the latest release, from a 0.2% gain in the preliminary data.

Economists and officials say the earthquake and tsunami have weighed on corporate sentiment. "The downward revision is mostly due to weaker domestic demand, especially capital investment and inventories," said a Cabinet Office official briefing reporters.

Real GDP contracted by 0.5% from the previous quarter, the revised figures showed, weaker than the 0.3% fall in the preliminary data.

—Kosaku Narioka contributed to this article.

Write to Takashi Mochizuki at takashi.mochizuki@dowjones.com

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Six Months Later: Noda's New World - Wall Street Journal (blog)

It was politics as usual for Yoshihiko Noda on the morning of March 11.

Prime MinisterPrime Minister Yoshihiko Noda, center, speaks to workers during a visit to the Fukushima Daiichi nuclear power plant on Sept. 8.

As Japan’s finance minister, he swatted away questions at his regular post-cabinet meeting news conference on then-prime minister Naoto Kan receiving political donations from a foreign national – forbidden in Japan. The biggest thing on his plate was trying to find ways to deal with the grinding crush of the strong yen on the world’s third-biggest economy.

Just under six months on from the disasters that struck Japan later that day, Mr. Noda’s world is very different: Thursday’s morning mission was a trip to the Fukushima Daiichi power plant to see first-hand the site of the country’s worst-ever nuclear-power incident.

Mr. Noda, who was formally named Japan’s prime minister Sept. 2 after putting recovery in the Tohoku disaster zone at the heart of his agenda, arrived in the regulation blue overalls that became familiar during the first few weeks of the crisis before passing on messages of encouragement and commitment to workers at the site, according to local reports. In the brief footage made available, Mr. Noda was then filmed talking to a group in a white protective suit and a blue cap – but without a face mask, presumably indicating the location was some way removed from highly dangerous areas inside the plant’s perimeter.

With areas to the west of Japan still drying out after the impact of the deadly Typhoon Talas, Mr. Noda’s visit to Fukushima is just the start of a busy spell on the road. Friday will see him travel to Wakayama, Nara and Mie prefectures to inspect clean-up efforts, and on Saturday he will head north again to visit the tsunami-ravaged prefectures of Miyagi and Iwate.  On Sunday, the full six months on from March 11, Mr. Noda will be back in Tokyo, according to government officials.

But having selected a novice as finance minister — expected back in Japan over the weekend after a meeting of G7 officials in France — it seems clear that Mr. Noda has elected to keep one issue with which he now has plenty of experience in his sightline, along with the rest of Japan’s problems: how to deal with the stubborn yen.

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Toyota May Import Small Cars From Thailand - Wall Street Journal

TOYOTA CITY, Japan—Toyota Motor Corp. may start exporting cars made in Thailand to markets including Japan, where the auto maker is struggling to offset the yen's rise to record levels against the dollar, a senior executive said on Wednesday.

The vehicles could become Toyota's first subcompact built overseas to be imported into Japan, where demand is shifting to small, fuel-efficient cars.

The Japanese auto maker now produces a pair of subcompacts in Thailand, along with a clone called the Etios in India. It is considering a version based on the same platform for export to other markets, said Yukitoshi Funo, ...

TOYOTA CITY, Japan—Toyota Motor Corp. may start exporting cars made in Thailand to markets including Japan, where the auto maker is struggling to offset the yen's rise to record levels against the dollar, a senior executive said on Wednesday.

The vehicles could become Toyota's first subcompact built overseas to be imported into Japan, where demand is shifting to small, fuel-efficient cars.

The Japanese auto maker now produces a pair of subcompacts in Thailand, along with a clone called the Etios in India. It is considering a version based on the same platform for export to other markets, said Yukitoshi Funo, ...

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Asian Shares End Higher; Weaker Yen Boosts Japan Exports - Wall Street Journal

SEPTEMBER 7, 2011, 7:02 A.M. ET

(Updates to include India closing markets)

By Sarah Turner and Nick Godt

Asian markets rallied Wednesday, with investors jumping into stocks tied to global economic growth, and shares of Japanese exporters benefiting from a Swiss-made drop in the yen.

"I think everyone is cautiously optimistic," said Lucinda Chan, a division director at Macquarie Private Wealth. "I think there's a little bit of excitement after the recent sell-off to see if there's support in this market."

On the heels of three straight sessions of losses, South Korea's Kospi ...

(Updates to include India closing markets)

By Sarah Turner and Nick Godt

Asian markets rallied Wednesday, with investors jumping into stocks tied to global economic growth, and shares of Japanese exporters benefiting from a Swiss-made drop in the yen.

"I think everyone is cautiously optimistic," said Lucinda Chan, a division director at Macquarie Private Wealth. "I think there's a little bit of excitement after the recent sell-off to see if there's support in this market."

On the heels of three straight sessions of losses, South Korea's Kospi ...

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Is One Japanese Camry Worth 2.5 Made in the US? - Wall Street Journal (blog)

Toyota Motor Corp. Toyota’s hybrid Camry that went on sale in Japan on Sept. 5. Toyota Motor Corp.The 2012 Toyota Camry.

Two weeks after Toyota Motor Corp. took the wraps off its latest generation Camry sedan with a slickly produced, Hollywood-style debut in the U.S. on Aug. 23 (at Paramount Studios, no less), the company quietly rolled out the domestic version of the sedan on Monday.

With nary a back flip, live band or pulsing LED billboard to celebrate its arrival, the Japan-market 2012 Camry rolls into showrooms touting such class-leading features as “trunk capacity to allow accommodation of up to four golf bags,” according to the official press release.

In Japan, the Camry is available only as a hybrid, unlike its U.S. market cousin that offers both standard (with a four-cylinder or V6 engine) and gas-electric hybrid options. The U.S. and Japanese cars share platforms, but while the hybrid versions look similar—the Japan hybrid has a slightly more prominent hood and linear front grill—the standard U.S. Camry and Japan market car are like night and day in paternity-test provoking ways.

Take price, for example.

While the standard U.S. market Camry manufacturers’ suggested retail price ranges from $21,955 to $29,845, the Japanese Camry MSRP starts at 3.04 million yen ($40,000) and tops out at a whopping 3.80 million yen ($50,000) using an exchange rate of 76 yen to the dollar. In other words, for the price of one “Leather package” Camry sold in Japan, you could buy nearly 2.5 of the bare-bones L grade Camry models sold in the U.S.

OK, part of that differential is due to an apples-and-oranges comparison between the gas-engine U.S. Camry and the Japan-market hybrid. But even when both nations’ hybrid versions are compared, the price gap is substantial. Toyota is asking $25,900 for the U.S. market 2012 Hybrid LE and $27,400 for the Hybrid XLE—about half the MSRP of the priciest Japanese hybrid Camry.

Why the huge disparity? “It’s mostly a function of the yen’s strength against the dollar and also lower production volumes in Japan,” explained Keiichi Yoneda, Toyota’s deputy chief engineer for the Camry, who spoke to reporters at a low-key press conference in Tokyo.

The Japanese currency has raced to record highs against the dollar this year, which makes cars and other “Made In Japan” products more expensive when sold overseas. That has prompted Toyota and other Japanese car makers to shift production offshore.

In fact, Toyota says none of its newest Camry models—the seventh generation of the line—will be exported from Japan to North America (3,200 were exported in 2010.) At the same time, Toyota expects to sell only 500 to 1,000 Camry models a month in Japan, which accounted for less than 1% of the car’s global sales of 692,000 vehicles last year.

That stands in stark contrast to the U.S., which accounts for 52% of the global market for Camry models. Higher volumes at its Camry factory in Georgetown, Kentucky, allows Toyota to spread out fixed costs over more cars, thereby reducing the average price per vehicle.

To keep that factory humming, Toyota will back the U.S. Camry’s launch with the largest marketing campaign in the model’s history, including some 40 new commercials.

But in Japan, the car is getting less fanfare. According to Toyota’s press kit, the company’s biggest marketing gambit is a cable television documentary about the 2012 year model hosted by a middle-aged former Japanese pro baseball player and coach. It airs at 11:30 pm.

Yawn.

Follow Chester Dawson on Twitter @DeliverTheFirm

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Honda to Recall 936000 Cars World-Wide - Wall Street Journal

TOKYO—Honda Motor Co. said Monday it will voluntarily recall nearly 1 million cars globally to repair problems with power windows and computer equipment.

Honda said no serious injuries or fatal accidents have been reported due to the problems, and the repair bill will be limited to about $17 million in Japan.

But the latest move comes hard on the heels of another large recall and adds to Honda's headaches as it seeks to join local peers in bouncing back from production disruption in the aftermath of the March 11 disasters. Japan's auto makers must also cope with the yen riding high at near record-strength versus other major currencies like the dollar, making their exports more expensive and less competitive.

Reuters A Honda Fit in a Tokyo showroom this summer.

Honda, Japan's third-biggest car maker by volume, recalled more than 2.3 million vehicles in early August, citing problems with automatic transmissions.

On Monday Honda said it will recall 936,000 Fit compacts, CR-V and City models in Japan, China, the U.S., Europe and other countries in Asia and Africa due to defective power-window switch units.

A Honda spokeswoman said that two members of the public reported light burns after touching overheated power switches. She also said there were nine reported cases of vehicles catching on fire in Japan and China due to the power-window problem.

The car maker will also recall 26,000 CR-Z hybrid models in Japan, the U.S., Canada and other markets because of defective programming of electronic control units for motors used in the model.

For both recalls, the company will spend a combined ¥1.29 billion ($16.8 million) in Japan, a Honda spokeswoman said. She declined to elaborate on the costs of the overseas recalls.

On Monday, as auto sector stocks in Tokyo were depressed by the strength of the yen, Honda shares tumbled after the company announced the recall. Honda shares ended the day 4.7% lower, while Toyota Motor Corp. shares dropped 2.6% and the Nikkei Stock Average shed 1.9%.

--Kenneth Maxwell contributed to this article.

Write to Yoshio Takahashi at yoshio.takahashi@dowjones.com

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