According to the Survey, the overall livelihood and income growth slipped from 42.2 points to 41.0 points in October and unchanged at 42.2 points respectively. A measure of employment in the survey plunged from 46.4 points to 45.3 points. Furthermore the willingness to buy durable goods fell to 42.8 points from 45.5 points, painting a gloomy outlook.

Equally, a measure of expectations on wages fell 0.2% as the jobless rate fell to 4% in September from 3.6% in August.

The Ministry of Finance announced today that Japan’s current account surplus soared for the ninth month by 40.4% in September from a year earlier to 2.883 trillion yen before seasonal adjustment. In August the surplus increased by 42.1%. Economists had forecasted a gain to 2.66 trillion yen.

The Finance Ministry also added that surplus for the April to September fiscal half expanded 34.1% on year to 12.424 trillion yen, the fourth fiscal half of growth buoyed by growing automobile exports to Europe and Asia.

Of the Nikkei 225 index shares, Dowa Holdings paced advancers with a rise of 13.52%, followed by gains of 8.17% in TDK Corp, 6.93% in Chiyoda Corp, 6,86% in Furukawa Electric Company, and 6.18% Bridgestone Corp.

Financial stocks declined as more U.S banks announced negative profit outlooks in the wake of the U.S. housing slump. Wachovia announced it might have lost $1.7 billion, while Bank of America and JP Morgan Chase & Co announced fourth quarter results might be affected by the credit crunch. The Daily Telegraph, London based newspaper, also reported that Europe’s HSBC Holdings would announce $1 billion in write-downs tied to sub-prime losses.

Also in the region, China increased reserves by 0.5% to 13.5% of deposits to prevent the economy from overheating. Mitsubishi UFJ Financial Group fell 1.85%, Mizuho Financial Group plunged 2.45%, and Sumitomo Mitsui Financial Group dropped 2.13%.

Exporters continued on the downtrend as the yen rose to an 18-month high against the dollar at 110.45 from 110.47, while it was quoted at 161.58 from 161.60 against the euro. Canon Incorporated climbed down 2.69%, Sony Corp shed 2.62% and Toyota Motor Corporation fell 2.76%.

Dai Nippon Printing Company led rising index shares, gaining 5.30% followed by rises in Secom Company Limited to 3.27%, in Denki Kagaku of 2.78%, in Sapporo Holdings of 1.91% and in Clarion Company Limited of 1.52%.

Dai Nippon Printing Company Limited gained on strong earnings performance after the company announced net income increase to 21.8 billion yen against 21.5 billion yen estimate.

Brewer Sapporo Holdings gained on Kyodo reports the Brewer Association of Japan reported yesterday shipments of beer and fermented beverages rose 0.8% to 39.32 million cases in October on price promotions.

Isuzu Motors, 5.9% owned by Toyota Motor Corp reported today first half net income fell to 37 billion yen from 55.4 billion a year ago. Operating profit fell 16% to 48.3 billion yen. Sales rose 6% to 874.5 billion yen spurred by sales in South East Asia and the Middle East.

Full year net income forecast for the company was unchanged at 80 billion yen, while full year sales projections were raised to 1.75 trillion yen. Isuzu Motors closed 4.04% down.

6:00PM Sydney, - 2:00AM New York - The Australia index declined 1.4% weighed down by loses in mining and energy stocks.

ASX 200 index fell 1.4% or 90.4 to close at 6,455.30. Woodside Petroleum Ltd declined 5.9%, Newcrest Mining Ltd was lower at 4.7%, and Rio Tinto put on 6.7%.

BHP Billiton announced today that it was considering returning $33 billion to shareholders through a share buyback if its proposed merger with Rio Tinto goes ahead.

The company said a combined group would have the financial flexibility to return significant capital to its shareholders.

The company flagged an initial share buyback, or other appropriate mechanism, of about A$30 billion after completion of the proposed merger.

BHP Billiton said the cash distribution would allow ""the combined group to have an efficient balance sheet while maintaining flexibility for future investment''''. The miner said it ""continues to seek to engage in discussions with Rio Tinto'''' about a potential merger, which would create the world''s largest producer of coking coal, thermal coal, copper and aluminium.

""To date Rio Tinto has not agreed to these discussions,'''' BHP Billiton said in a statement. BHP Billiton said a merger was the ``most logical and compelling consolidation opportunity for both companies'''' and could create synergies and cost savings in the order of $3.7 billion.