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Kyodo economic news summary -4-.

TOKYO, Nov. 6 Kyodo

---------- Promise posts 159 billion yen net loss in April-September period

TOKYO - Major consumer loan firm Promise Co. on Monday reported a group net loss of 159.42 billion yen in the April-September period, a turnaround from a net profit of 31.36 billion yen a year earlier.

Promise attributed the loss mainly to the fact that it increased allowances for a possible increase in borrowers' claims for repayment of its proceeds made on the so-called ''gray zone'' interest rates.

---------- Japan gov't bond, futures prices down after U.S. interest rates rise

TOKYO - Benchmark 10-year Japanese government bond and futures prices slid Monday, sending the yields higher after long-term U.S. interest rates sharply rose Friday.

In interdealer trading, the yield on the No. 282 1.7 percent issue rose 0.050 percentage point from Thursday's close to 1.755 percent. Japanese financial markets were closed Friday for a public holiday.

---------- Dollar moves little in lower 118 yen zone amid lack of market news

TOKYO - The U.S. dollar hovered just above the 118 yen line Monday in Tokyo, moving little amid a lack of market incentives.

At 5 p.m., the dollar was quoted at 118.17-19 yen, compared with Friday's 5 p.m. quote of 117.94-118.04 yen in New York. The Tokyo market was closed Friday for a national holiday.

---------- Nippon Steel eyes plant in Thailand to make wire rods for vehicles

TOKYO - Nippon Steel Corp. said Monday it will set up a factory in Thailand to make wire rods for bolts used in vehicles in cooperation with six other Japanese firms, including Toyota Tsusho Corp., the Toyota group's trading unit.

In light of Japanese automakers' growing production in Thailand, Nippon Steel has decided to set up Nippon Steel Bar & CH Wire (Thailand) Co. in December, which will become operational as early as July 2007.

---------- Takeda reports record interim sales, raises dividend payout

TOKYO - Takeda Pharmaceutical Co. said Monday it has posted record-high interim group sales for the eighth straight year and raised its dividend payment for the first half of fiscal 2006, thanks to robust sales of ethical drugs and the yen's depreciation against the U.S. dollar and the euro.

For the April-September period, group sales increased 7.1 percent from a year earlier to 642.43 billion yen and group pretax profit gained 15.3 percent to 299.04 billion yen, also a record high interim profit, Takeda said.

---------- Gov't to review depreciation system to lower tax burden on firms: Omi

OSAKA - The government will consider expanding the asset depreciation system as part of corporate tax cuts under tax reforms for fiscal 2007, Finance Minister Koji Omi said Monday.

''Basically, we will consider eliminating the gap between the residual value (of assets) and depreciation,'' Omi said at a press conference in Osaka.

---------- JAL, ANA to lower int'l fares from Jan. on fall in fuel costs

TOKYO - Japan Airlines Corp. and All Nippon Airways Co. are expected to lower fares on their international routes from January due to a decline in fuel costs, industry sources said Monday.

The airlines are expected to lower fuel surcharges -- levied separately from regular flight fares -- by up to 1,100 yen per one-way flight, marking the first cut in fuel surcharges since the surcharge system was introduced last year, the sources said.
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Publication:Japan Weekly Monitor
Date:Nov 13, 2006
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