Earthquake hits off Japan coast

30 July 2011 Last updated at 20:06 GMT A 6.4 magnitude earthquake has been felt in north-east Japan, shaking buildings in the capital Tokyo, reports say.

The quake's epicentre was off the east coast of Honshu.

It struck in the same area as the 11 March earthquake and tsunami but no abnormalities at Japanese nuclear plants were reported, Reuters says.

There were no immediate reports of damage or injuries and no tsunami warning was issued.

More than 20,000 people died or were reported missing as a result of the disaster in March, which also crippled nuclear reactors in the Fukushima area.

The quake occurred close to Iwaki, with its centre around 100km (60 miles) south-south-east of Fukushima city.

It occurred at 0354 local time on Sunday (1854 GMT Saturday), at a depth of 44km (27 miles).

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PM Kan urges 'nuclear-free Japan'

13 July 2011 Last updated at 10:31 GMT Protesters have targeted Naoto Kan for criticism on the nuclear issue Japan's Prime Minister Naoto Kan has called for his country to develop into a nuclear-free society, amid rising public anger at the continuing crisis at the Fukushima Daiichi plant.

In a televised news conference, Mr Kan said the country should harness renewable energy sources.

The 11 March earthquake and tsunami wrecked the Fukushima plant, which continues to leak radioactive material.

A large section of public opinion has turned against nuclear power.

About 30% of Japan's electricity was nuclear generated before the Fukushima crisis, and the country had targeted raising that figure to 53% by 2030.

But Mr Kan had already said this commitment should be scrapped.

On Wednesday, he went a step further, saying: "We will aim at realising a society which can exist without nuclear power."

He said the country should aim to develop alternative energy sources such as solar, wind and biomass.

But he did not lay out a timescale for his plan.

Last month Mr Kan headed off a bid to topple him from power by telling his colleagues he would step down when Japan's crises were under control.

But his continued refusal to say when he will quit has led to speculation that he might call a snap election on the nuclear issue.

In Wednesday's news conference, he denied that he intended to call an election

Mr Kan has slumped to his lowest level of popularity since he took office just over a year ago.

According to an opinion poll this week, just 16% of the population believe he is doing a good job.

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Japan PM sorry for nuclear mix-up

8 July 2011 Last updated at 10:00 GMT Naoto Kan has been under huge pressure over the scandal Japan's prime minister has apologised for causing confusion by ordering nuclear firms to carry out safety tests on their reactors, weeks after his government said the plants were safe.

Naoto Kan said his order for "stress tests" on Wednesday came too late.

Local officials and energy firms say they no longer know whether they can restart their reactors or not.

Two-thirds of Japan's reactors have remained inactive since the devastating earthquake and tsunami on 11 March.

The 9.0-magnitude earthquake and tsunami levelled towns along the country's north-east coast, leaving thousands homeless and killing more than 14,000 people.

The disaster also wrecked the Fukushima Daiichi plant, causing radiation leaks and a national review of nuclear power.

After carrying out inspections, ministers announced last month that the country's nuclear plants were safe to reopen.

Continue reading the main story 11 Mar: Fukushima Daiichi nuclear plant struck by huge earthquake and tsunami16 Mar: 20km evacuation zone declared around plant17 Apr: Plant owner Tepco says crisis will be under control by end of the year20 May: Tepco President Masataka Shimizu resigns as firm posts losses of 1.25tn yen ($15.3bn; ?9.4bn) for the past financial year2 Jun: Naoto Kan survives no-confidence vote over his handling of quake and nuclear crisesBut in a surprise announcement on Wednesday, the government said stress tests were needed - giving no timescale and few details of what the tests would entail.

The mayor of the southern town of Genkai, who had already given his consent for the local power station to be restarted, held an angry news conference on Thursday denouncing the government's U-turn.

On Friday, Shikoku Electric Power announced it was postponing plans to restart two reactors at Ikata because it did not believe it could get public support.

Other local officials and power firms have appealed to the government to clarify its policy.

Mr Kan told a cabinet meeting on Friday he was sorry, saying: "My instruction was inadequate and came too late."

His chief cabinet secretary Yukio Edano acknowledged that the government needed to be clearer.

"We realise that we need to clarify the situation, but right now we are discussing exactly what the next step will be," he said.

The government has said it was satisfied that Japan's plants were safe, but the stress tests were designed to allay people's fears.

Mr Kan has been under huge pressure over his handling of the nuclear crisis and the reconstruction of areas devastated by the tsunami and earthquake.

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Japan quake still hurting trade

8 July 2011 Last updated at 02:13 GMT Japanese carmakers were some of the hardest hit, facing supply shortages and power cuts Japan's current account surplus fell sharply in May, as the 11 March earthquake and tsunami continue to affect exports.

The surplus shrank 51.7% to 590.7bn yen ($7.27bn; ?4.55bn) compared with a year earlier, said the Ministry of Finance.

However, that is less than most analysts had expected.

The data shows that while the economy continues to suffer from the disaster, it is recovering quicker than expected.

May's fall in the current account surplus marks the third straight monthly drop after the earthquake and tsunami wreaked havoc in the north east of Japan.

In April the surplus was down 69.5%.

Trade deficit

Even as the supply chain recovers and manufacturers come back online exports are still suffering.

The data showed that exports fell by 9.8% in May from a year earlier.

While imports rose 14.7%, mainly because of higher energy costs.

That translated to the second-biggest trade deficit on record, the ministry said.

The current account is the broadest measure of a country's trade with the rest of the world.

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Japan imposes new energy limits

1 July 2011 Last updated at 13:00 GMT Boards in Tokyo tell office workers the current power use compared to supply Factories, shops and offices in Tokyo have been told to cut down on their energy use because of power shortages.

Large businesses in the Tokyo area will have to use 15% less energy than last year because of the closure of the Fukushima nuclear power plant.

The latest restrictions come as Japan's big manufacturers have turned pessimistic about business conditions, according to the latest Tankan survey.

The business sentiment index plunged 15 points to minus nine in June.

It is the first negative rating in 15 months, although manufacturers expect conditions to improve later in the year.

The sentiment index is derived by subtracting the percentage of respondents who say conditions are poor from those who say they are good.

No air conditioning Lights and billboards were first turned off shortly after March's earthquake.

The power restrictions came into force on Friday and will apply to big factories, office buildings, universities and department stores in the Tokyo area.

The new rules come as power use rises as a result of the summer heat.

Electricity use between 9am and 8pm on weekdays must be reduced by 15% compared with last year. The rules will be in place until 22 September.

Companies who use too much power could face fines of up to 1m yen ($12,400; ?7,750).

"We ask their co-operation so we can all overcome the energy crunch," said trade ministry official Satoshi Koyanagi.

Firms have announced plans to cut down on their energy use.

Sony says it will turn off the air conditioning after 6pm and start the business day an hour earlier than usual.

The Tokyo Stock Exchange has turned off its electronic price ticker and will not receive visitors until the end of September.

"We are turning off all the lights and air conditioning in the visitors' areas," said stock exchange spokesperson Yukari Hozumi.

The government has already advised office workers to wear casual clothing in place of jackets and suits rather than to turn up air conditioning systems.

The earthquake and tsunami that hit Japan on 11 March led to rolling power blackouts affecting factories around the country.

Positive outlook

While the damage caused by the twin natural disasters has hit Japanese manufacturers hard, companies say they expect conditions to improve in the second half of the year.

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A slowdown in the global economy would slow the recovery in exports, while power supply problems in the summer may put a lid on factory output”

End Quote Takeshi Minami Norinchukin Research Institute Analysts said that as conditions on the ground improve, businesses are likely to bounce back.

"The headline index was a little weaker than expected [in June], but big manufacturers' sentiment is seen as rebounding firmly," said Takeshi Minami of Norinchukin Research Institute.

"The data confirmed the view that the worst is over and the economy will return to a moderate recovery led by manufacturers later this year," he added.

Data released earlier this week showed that factory output in Japan was recovering at a faster-than-expected pace.

Industrial production in May rose by 5.7% compared with the same month last year, the second successive month of rising output.

Many manufacturers continue to face power cuts and supply chain shortages Stumbling blocks

However, though the supply chain conditions and industrial output have started to improve, analysts warned the recovery could be derailed by various factors.

"There are risks to such a recovery, which will be based on reconstruction demand and exports," said Mr Minami.

If a political impasse were to delay reconstruction projects in the country it would have a detrimental affect on the economy, he said.

Hiroshi Miyazaki of Shinkin Asset Management Company added that a lot of Japanese companies were anticipating increased demand due to reconstruction activity after the quake and tsunami.

"If this demand doesn't come through as expected, there is a risk of a sharp adjustment," he warned.

Analysts said a combination of other internal and external factors may also hit the Japanese manufacturing sector.

"A slowdown in the global economy would slow the recovery in exports, while power supply problems in the summer may put a lid on factory output," said Mr Minami.

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Japan car firms hire to up output

21 June 2011 Last updated at 06:17 GMT Japanese car makers have been suffering a shortage of parts and therefore operating at reduced capacity Japanese car firms will boost production by hiring thousands of contract workers in the aftermath of the March earthquake and tsunami.

Toyota Motors has said it will take on up to 4,000 workers starting in July, after a plunge in Japanese production of almost 75% in April.

Honda said it will hire about 1,000 contract workers and Nissan about 200.

Japan's car makers have been facing supply chain disruptions and power shortage problems since the disaster.

Toyota said that in Japan it will be back to 90% pre-earthquake production levels in June and close to 100% from July onwards.

"By July we'll be back at monthly production levels. But we still have to make up for those units we lost over the last couple of months," said Toyota spokesman Dion Corbett.

"This [hiring] drive is primarily to make up for lost production."

The sentiment is echoed by the other car makers.

Honda, which also saw a dive in production after the earthquake, said it was hiring on 3-months contracts.

"When production went down to 50% we had stopped some contracts for some temporary workers. Therefore to increase production, we are increasing hiring," said spokesperson Akiko Itoga.

The 9.0 magnitude earthquake and subsequent tsunami destroyed entire towns and disrupted electricity-generating facilities, including the Fukushima nuclear power plant.

This led Japanese car firms to announce production disruptions, both domestically and overseas, because of plant closures and slowing output.

Toyota forecasts it will suffer 450,000 units of lost production this fiscal year which ends on March 31, 2012, according to Mr Corbett.

Approximately 220,000 units of Toyota and Lexus production were lost globally between March 11 through to the end of that month.

Therefore. the global impact of the earthquake on Toyota is approximately 670,000 units.

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Stradivarius sold to raise money for Japan victims

21 June 2011 Last updated at 04:26 GMT The Lady Blunt is admired by experts for its exceptionally good condition A well-preserved Stradivarius violin has been sold in an online auction for ?9.8m ($15.9m) to raise money for disaster relief in Japan.

The violin was made in 1721 and is known as the Lady Blunt after Lord Byron's granddaughter Lady Anne Blunt who owned it for 30 years.

It was sold by a music foundation in Japan for victims of the earthquake and tsunami in March.

The price is more than four times the previous record for a Stradivarius.

Proceeds will go to the Nippon Foundation's Northeastern Japan Earthquake and Tsunami Relief Fund.

The violin was offered for sale by the Nippon Music Foundation, owner of some of the world's finest Stradivari and Guarneri instruments.

'Profound generosity'

Foundation president Kazuko Shiomi said: "While this violin was very important to our collection, the needs of our fellow Japanese people after the March 11th tragedy have proven that we all need to help, in any way we can.

"The donation will be put to immediate use on the ground in Japan."

London auction house Tarisio, who organised the sale, described the foundation's decision to sell "what is considered the finest violin of their collection" as a "gesture of profound generosity".

The violin is one about 600 instruments made by Italian Antonio Stradivari still in existence.

It has also been owned by several well-known collectors and experts including WE Hill & Son, Jean Baptiste Vuillaume, the Baron Johann Knoop and Sam Bloomfield.

The identity of its new owner has not been revealed.

The Lady Blunt fetched a then-record ?84,000 when it was last auctioned at Sotheby's in 1971.

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Japan economy back in recession

19 May 2011 Last updated at 07:09 GMT Japan is struggling to restore damaged production lines Japan's economy, the world's third largest, has slid back into recession after the devastation caused by the earthquake and tsunami in March.

Gross domestic product shrank 0.9% in the first three months of the year, the Cabinet office said, giving an annualised rate of contraction of 3.7%.

Analysts say consumption and exports were worst hit.

Japan's economy has now contracted for two quarters in a row, the generally accepted definition of a recession.

Japan sank into a recession during the global financial crisis, but had emerged from it in 2009.

The contraction in the first three months of this year was bigger than expected, with most analysts expecting the annualised rate would show a contraction of about 2%.

"Japan's economy is expected to remain weak for the time being," said Japanese Economics Minister Kaoru Yosano on Thursday.

However, Mr Yosano said that supply constraints were easing and reconstruction demand was likely to spur growth.

"The economy has the strength to bounce back," Mr Yosano said.

Pessimistic consumers

Naomi Fink, Japan Strategist at Jefferies, said the most worrying part of the latest data was the decline in private consumption of 0.6%, as people cut their spending after the earthquake.

Private consumption accounts for almost 60% of the Japanese economy.

Roland Buerk reports from Tokyo on Japan's attempts to deal with power loss caused by the earthquake

"It was already soft in the final quarter of 2010," said Ms Fink.

The earthquake, however, has further dampened sentiment.

The consumer confidence index fell to 33.1 in April, according to the Cabinet Office, where a reading below 50 suggests consumer pessimism.

"Judging by the drop in retail sales and household expenditures over March, consumption should be one of the greater contributors to negative growth in the first quarter," said Ms Fink.

Damaged supply chains

The second biggest component of the world's third largest economy is trade.

Exports made up 13.5% and imports 12.7% of gross domestic product in 2009.

The massive earthquake and tsunami devastated exports, while the costs of imports rose due to high commodity prices.

Japan's trade surplus fell by 34.3% in March compared with the same month a year ago.

"One issue on the export side is the ongoing struggle to restore damaged production lines and supply chains," said Ms Fink.

"On the import side, the increase in demand for fossil fuels, to offset the drop in supply of nuclear energy, is unlikely to fade anytime soon," she added.

Reconstruction demand

Once rebuilding gathers momentum, however, it should have a positive impact on the economy.

But that is only likely to happen towards the end of this year.

"I do not expect positive growth in the second quarter," said Ms Fink.

The country's central bank begins its two-day meeting on Thursday to discuss its monetary policy.

"Japan's economic strength is gradually declining," Bank of Japan (BOJ) governor Masaaki Shirakawa told a parliamentary committee meeting on Tuesday.

Analysts say this signals that the central bank will stick to its ultra-loose monetary policy.

The bank has pumped billions of dollar into the financial system to stabilise the economy since the massive earthquake.

The BOJ is expected to keep the rates unchanged at the lowest level in a range of 0.0% to 0.1%, to help stimulate the economy.

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