Building construction starts plunged in September to 44.7% from a decline of 42.1% in August to 9,162 units.

Bloomberg News reported today that the Cabinet Office presented its public debt estimates to the Liberal Democratic Party’s fiscal reform panel that showed Japan’s public debt might soar to 900 trillion yen in 2015 if the government doesn’t cut spending and increase revenues. Debt of national and local governments might rise to 148.8% of GDP in the year starting April 2015 from 141.1% this year.

Japan Automobile Manufacturers Association said today that Japanese vehicle exports in the six months between April and September grew to a 20-year high by 6.8% from a year earlier to 3, 134, 676 units, spurred by exports to Russia and the Middle East.

Of the Nikkei 225 index stocks, NSK Limited led advancers, edging up 11.57%, followed by gains of 8.82% in Resona Holdings, 7.22% in Isuzu Motors, 7.13% in Fuji Electric House and 5.61% in Sky Perfect JSAT.

NSK Limited rose the most in five years after the bearings maker boosted its full-year net income forecast by 17.6% to 41 billion yen. Net income for the six-month period ending September 2007 firmed 2.4% to 17.7 billion. Mizuho Securities Company also lifted its recommendation on the stock to “strong buy” from “buy.”

Exporters also rose on stronger sentiment after the U.S. economy expanded at the fastest pace in two years. Sony Corp rose 3.37%, Toyota Motor Corp soared 2.74% and Honda Motor Corporation gained 1.86%.

Yokogawa Electric Co led Nikkei 225 Index stocks with a plunge of 13.86%, followed by losses in Konami Corp of 5.90%, in NTT Data Corp of 5.74%, in Mitsui Engineering & Shipbuilding Company of 5.22%, and Showa Denko of 4.90%.

Yokogawa Electric Company slumped to 3-year low after lowering forecast for net income in the year ending March 31, 2008 by 14% on lower prices of computer memory chips.

Shipping lines also fell as prices of fuel jumped. Kawasaki Kisen Kaisha Limited slumped 4.68% and Mitsui O.S.K. tumbled 2.97%.

Financial stocks climbed down as Mitsubishi UFJ Financial Group said first half profits slipped 52% and revised its full-year forecast. Mitsubishi UFJ, Mizuho Financial Group and Sumitomo Mitsui Financial Group declined 1.76%, 0.16% and 1.18% respectively on the news.

GCA Holdings announced today it would acquire the U.S. based Savvian LLC for 90 billion yen as it expands to overseas markets.

Mitsubishi Corp also said it would buy Kentucky Fried Chicken Japan for 30.8 billion yen and raised its profit forecast this year. The company finished up 2.25%.