Average monthly consumption for a household of two or more in November fell 0.6% to 282,836 yen, while average monthly income per household slid 1.5% in nominal terms and 2.1% in real terms from previous year to 435,640 yen.

In addition, expenditures declined 0.9% in nominal and 1.5% in real terms to 302,879 yen from a year ago.

METI reported that industrial production fell 1.6% from previous month and increased 2.9% for the year in November to a seasonally adjusted 110.4. Production is expected to rise 4.0% in December and to remain unchanged in January.

Inventories increased for the eleventh successive month by 2.5%.

Minister of Economy and Fiscal Policy Hiroko Ota said in Tokyo today inflation induced by high energy “may choke off spending by consumers and companies”.

Of the Nikkei 225 index stocks Takeda Pharmaceutical Company led gainers with a rise of 3.03% followed by gains in Nippon Oil Corp of 2.02%, in Mazda Motor Corporation of 1.64%, in Daiwa Securities of 1.40%, and in Kubota Corporation of 0.66%.

Japan Airlines led decliners in the Nikkei 225 stocks with a fall of 5.56% followed by losses of 4.57% in Chiyoda Corp, 4.43% in Meiji Seika, 3.80% in Mitsumi Electric Company, and 3.77% in Credit Saison Company.

Japan Airlines stock fell sharply on Nikkei reports it may sell its preferred shares to raise 150 billion yen. The carrier is reportedly seeking agreements with Mitsubishi Corp, Mitsui & Company and four other lenders by the end of March.

Financial stocks fell after Goldman Sachs said Citigroup, JP Morgan Chase, Merrill Lynch may write-down an additional $34 billion in subprime linked investments in the current quarter. Mitsubishi UFJ Financial Group fell 3.15%, Mizuho Financial Group slipped 2.91%, and Sumitomo Mitsui Financial Group declined 2.77%.

Exporters fell after U.S. orders for durable goods rose by a less-than-expected 0.1% in November. Canon edged down 2.62%, Toyota Motor Corporation fell 1.95%, and Sony tumbled 2.21%.

Bloomberg news reported today Mitsubishi Motor Corporation signed an agreement with the Russian government granting it incentives including reduced custom duties on imported auto parts to assemble vehicles in the country. Mitsubishi Motor Corp closed down 1.05%.



5:00AM New York, 9:00PM Sydney - The Australia index lost 0.2% after loses in resource stocks.

ASX 200 index lost 0.2% or 11 to close at 6,339.90.

The Preliminary market turnover was 355.4 million shares worth $1.105 billion with 348 stocks closed higher, 503 traded lower, and 292 were unchanged. Flinders Diamonds was the most actively traded stock with 37.9 million shares worth $3.68 million changing hands.

Rams Home Loans Group Ltd today extended a $500 million loan and the maturity of two of its funding facilities from December 31 to May 2.

The company also disclosed that it had also extended a separate $250 million facility to January 31 from December 31 as it failed to refinance more than $6 billion ($5.3 billion) in short-term loans this year.

Rams also indicated that it has received initial approvals to refinance $4.25 billion in short-term loans, including $1.5 billion with Westpac and $2.75 billion with lenders that were not identified.

Australia''s fourth-largest bank, Westpac Banking Corp bought the Rams brand and branch network for $140 million last month and agreed to provide $1.5 billion in funding after the company failed to refinance short-term loans when subprime- linked losses escalated in August and investors shunned risky credits.