Thais Flock to Japan as Weak Yen Means Bargains: Southeast Asia

Cherry trees blossom as pedestrians walk in front of
 buildings including the Tokyo Sky Tree, center, in Tokyo,
 Japan. Photographer: Tomohiro Ohsumi/Bloomberg

The Thai baht’s biggest quarterly gain against the yen since 1998 was enough reason for Kornkarun Cheewatrakoolpong, a 32-year-old economics lecturer in Bangkok, to change her honeymoon destination to Japan from Italy.

“It’s more affordable,” Kornkarun said in an interview from her home in the capital on April 17, after returning from a business trip to Japan. “I don’t feel it’s that expensive like in the past. I still expect that when I go for my honeymoon in November, the yen will remain weak.”

Kornkarun followed 36,000 Thai tourists who headed to Japan in the first two months of the year, 31 percent more than the same period of 2012 and the largest increase among five major Southeast Asian countries, according to data from the Japan National Tourist Organization. The baht, Asia’s best-performing currency in 2013, strengthened 14 percent versus the yen in the three months through March before rising a further 6.3 percent in April, making costs for accommodation, shopping and food cheaper for visitors from Thailand.

Tourists look towards the Tokyo Skytree at the Sensoji temple
in Tokyo, Japan. Photographer: Tomohiro Ohsumi/Bloomberg

The rise in tourists caused a shortage of yen banknotes in Thailand, central bank Governor Prasarn Trairatvorakul told reporters in Bangkok on April 9, before the nation’s markets closed for the four-day New Year holiday, known as Songkran. The Bank of Japan’s monetary easing, coupled with increasing investment, helped drive the baht to the strongest against the yen in five years on April 22. Japan’s currency may weaken to 100 per dollar for the first time since 2009 by year-end, according to 54 analysts surveyed by Bloomberg.

Relatively Cheaper

Japan’s currency has depreciated 19 percent versus the greenback since mid-November, when Prime Minister Shinzo Abe, then running for office, began a campaign to talk down the value of the exchange rate to revive the export-led economy. The weaker yen boosts competitiveness of Japanese goods such as cars made by Toyota Motor Corp. (7203), Nissan (7201) Motor Co. and Honda (7267) Motor Co.

The Bank of Japan announced April 4 it would buy 7.5 trillion yen ($76 billion) of debt a month, spurring outflows to higher-yielding assets. The BOJ’s benchmark interest rate is 0.1 percent, compared with the Bank of Thailand’s 2.75 percent.

The yen has weakened against all of the world’s 16 major currencies in 2013 and is leading losses in Asia, according to data compiled by Bloomberg. The exchange rate has declined almost 18 percent versus the baht this year, which if sustained would be the biggest annual drop since at least 1992.

“The yen’s weakness accelerated, especially against Asian currencies, and that encourages inflows of tourists,” Takahiro Sekido, a strategist in Tokyo at Bank of Tokyo-Mitsubishi UFJ Ltd., who formerly worked at the Bank of Japan, said in an April 22 telephone interview. “Things in other Asian countries are also getting more expensive, so when you shop in Japan and convert prices back to your own currency, people may feel things are much cheaper here.”

Reversal Signal

Bank of Thailand Governor Prasarn told reporters in Bangkok on April 19 that the baht’s advance has started to move beyond fundamentals. It reached 28.56 per dollar on April 19 and April 22, the strongest level since a devaluation in July 1997 that sparked the Asian financial crisis. The currency traded at 28.80 late yesterday, while one baht was buying 3.42 yen compared with 2.82 yen at the end of last year.

While ruling out imposing capital restrictions, Prasarn said on April 9 that the central bank stands ready to intervene should the currency move against fundamentals.

Some trading patterns show the baht is poised to fall. The dollar’s 14-day relative-strength index stayed below 30 between April 16 and April 22, a level that signals the greenback may be poised to rebound. Stochastics, which measure the price of a security relative to its highs and lows during a particular period, have fallen below 30 since March 12.

Passenger Traffic

Sisdivachr Cheewarattanaporn, president of the Association of Thai Travel Agents in Bangkok, predicts the number of tourists to Japan will increase 15 percent this year, without providing specific or historical numbers.

“Japan has always been a popular destination for Thai people, but the strong baht made it even more attractive,” Sisdivachr said in an April 17 telephone interview from Bangkok. “A lot of Thais are going to Japan for shopping and sightseeing as they feel they will spend less than before.”

The country’s national airline, Thai Airways International (THAI) Pcl, saw the percentage of its seats filled for routes in Asia, including Japan, climb 7.6 percent in the first two months of the year to 76.8 percent, while those to Europe and North Pacific fell 3.2 percent and 6.6 percent, respectively, according to its website.

“We have seen rising numbers of Thai shoppers to Japan in the last couple of months,” Danuj Bunnag, executive vice president of Thai Airways, said in a phone interview from his office in Bangkok on April 22. “Bookings in the next few months are also looking good.”

78th Province

For Prapharat Tangkawattana, a 45-year-old chief financial officer, the weakening baht meant a 33 percent saving for a three-night stay at the Hilton Niseko over similar graded hotels on the southern Thai island of Ko Samui.

Prapharat, who started her trip in the ski resort on the northern island of Hokkaido and travels to Japan almost every year, paid 9,000 yen for a night’s board at the Hilton. She also dropped by a shop in Tokyo’s upmarket shopping and tourist district of Ginza during her visit and bought a Rolex Perpetual Datejust watch on a whim because it was the equivalent of 74,000 baht cheaper than in Thailand, a nation of 77 provinces.

She ran into her Thai friends three times in Tokyo which she said was “unbelievable.”

“Tokyo is like the 78th province of Thailand,” Prapharat said in an April 17 telephone interview in Bangkok. “I felt that the cost of eating and accommodation was so cheap during this trip.”

To contact the reporters on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net; Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net.

To contact the editors responsible for this story: James Regan at jregan19@bloomberg.net; Stephanie Phang at sphang@bloomberg.net

Source Bloomberg.com

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Posted in: Asia,Business,Japan,Tourist

Japan PM Abe warns China of force over islands landing

Japan would respond with force if any attempt is made to land on disputed islands, PM Shinzo Abe has warned.

His comments came as eight Chinese government ships sailed near East China Sea islands that both nations claim.

A flotilla of 10 fishing boats carrying Japanese activists was also reported to be in the area, as well as the Japanese coastguard.

Mr Abe was speaking in parliament hours after dozens of lawmakers visited a controversial war-linked shrine.

Chinese and Japanese surveillance ships are monitoring each other closely

A total of 168 lawmakers paid their respects at the Yasukuni Shrine, which commemorates Japan's war dead, including war criminals, in a move likely to anger regional neighbours who say the shrine is a reminder of Japan's military past.

'Deal strongly'

The warning from the Japanese prime minister was the most explicit to China since Mr Abe took power in December, the BBC's Rupert Wingfield-Hayes reports from Tokyo.

Asked in parliament what he would do if Chinese ships tried to land on the disputed islands, Mr Abe said they would be expelled by force.

"Since it has become the Abe government, we have made sure that if there is an instance where there is an intrusion into our territory or it seems that there could be landing on the islands then we will deal will it strongly," he said.

The warning came as eight Chinese ships sailed around the islands - called Senkaku in Japan and Diaoyu in China.

The Japanese coast guard said it was the highest number of Chinese boats in the area since Tokyo nationalised part of the island chain in September 2012.

China said its ships had been monitoring Japanese vessels. The State Oceanic Administration issued a statement saying three of its ships had "found" several Japanese ships around the islands and "immediately ordered another five ships in the East China Sea to meet the three ships".

Ten Japanese boats carrying around 80 activists arrived in the area early on Tuesday, Reuters news agency reported, monitored by Japanese Coast Guard vessels. Public broadcaster NHK said the boats were carrying "regional lawmakers and members of the foreign media".

Japan's top government spokesman said the "intrusion into territorial waters" was "extremely regrettable". Japan also summoned the Chinese ambassador to protest, reports said.

The territorial row has been rumbling for years but was reignited last year when Japan bought three of the islands from their private Japanese owner.

China claims the island chain, which is controlled by Japan. Taiwan also claims the islands, which offer rich fishing grounds and lie in a strategically important area.

The dispute has led to serious diplomatic tension between China and Japan, most recently in January when Japan said a Chinese frigate locked weapons-controlling radar on one of its navy ships near the islands - something China disputes.

'Backlash'

The visit to the Yasukuni Shrine on Tuesday by lawmakers marking the spring festival is also likely to hit ties between Beijing and Tokyo.

Continue reading the main story

Yasukuni Shrine

• Built in 1869 under the Emperor Meiji
• Venerates the souls of Japan's war dead
• Those enshrined include convicted war criminals
• Japan's neighbours say it represents the country's past militarism

• Japan's Yasukuni Shrine

Visits to Yasukuni Shrine by lawmakers anger Japan's neighbours

Two cabinet ministers, including Deputy Prime Minister Taro Aso, visited the shrine on Sunday. Prime Minister Shinzo Abe did not visit but made a ritual offering.

South Korea subsequently cancelled a proposed visit by its foreign minister, while China lodged "solemn representations" in response to the ministers' visit.

"Only when Japan faces up to its aggressive past can it embrace the future and develop friendly relations with its Asian neighbours," Foreign Ministry spokeswoman Hua Chunying said on Monday.

But Japanese lawmaker Hidehisa Otsujji said it was "natural" for "lawmakers to worship at a shrine for people who died for the nation".

"Every nation does this. I don't understand why we get a backlash," he said.

Analysis

Rupert Wingfield-HayesBBC News, Tokyo

The video pictures coming in from the islands today are quite dramatic.

There are more ships than I have ever seen before during one of these encounters - at least eight Chinese ships and an equal number of Japanese coastguard cutters.

Sailing alongside, dwarfed by the larger ships, are 10 fishing boats flying the Japanese flag and carrying right-wing Japanese nationalists from a group called Gambare Nippon.

It is the sort of situation that could quite easily get out of hand if, for example, the Japanese nationalists try to land on the islands, or if the Chinese ships try to board one of the Japanese fishing vessels.

China is now taking the position that its ships are there protecting "Chinese" territory, and consequently have the right to board any "foreign" vessels.

That may be why Japanese Prime Minister Shinzo Abe has decided to be more emphatic in his warning to China, making it explicit that if any of the Chinese vessels attempt to land on Japanese soil, they will be repelled with force.

He is laying down a clear line over which he hopes the Chinese know they would be unwise to cross.

Source BBC

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Posted in: Asia,China,Japan,Politics

Japan Gives Taiwan Rare Concession in East China Sea Dispute

Taiwan Coast Guard patrol ships are seen during a drill held about 30 nautical miles northwest
 of the port of Kaohsiung, southern Taiwan, March 30, 2013.

TAIPEI — Japan gave Taiwan an unusual break this week in a stubborn ocean territorial dispute that also involves China. The first-ever concession met with applause in Taipei and a word of warning from Beijing. Japan controls the waters, but China and Taiwan both make unwavering claims.

Taiwan had pushed Japan for expanded fishing rights since 1996, vying with Tokyo and China for control of a massive stretch of the East China Sea believed rich in fisheries and natural gas.

On Wednesday talks reached a breakthrough, when Japan agreed to give Taiwanese fishing boats unconditional use of 4,530 more square kilometers of contested ocean.

The fisheries concession does not affect Japan’s four decades of control over the contested sea area, which is anchored by eight uninhabited islets. But the move signals that Japan wants relatively small Taiwan on its side, not China’s.

China has sent planes and allowed destructive mass protests to assert its claim since last year, when Japan nationalized the disputed islets it calls the Senkakus.
Nathan Liu, international affairs professor at Ming Chuan University in Taiwan, says Japan was afraid Taiwan would team up with China.
"I think it’s because of what happened last year, because of the nationalization of the Senkaku islands, and China became more aggressive. So Japan worried about the cooperation between Taiwan and China. So that’s the reason why they compromised a little bit," he said.

China’s Foreign Ministry spokesman, Hong Lei, urged Japan Wednesday to follow its pledges to recognize only one China and carefully handle issues involving Taiwan. China claims sovereignty over Taiwan and forbids its 170 diplomatic allies, including Japan, from activity that suggests Taiwan is a separate country.

Taiwan’s relations with China have improved since 2008 despite Beijing’s claims of sovereignty and Taiwan’s continued self-rule, though officials in Taipei say they are not allied with Beijing in the maritime dispute.

Japan, the world’s third largest economy, already spars with China, the second largest, on a host of other political and historical issues. Japan considers Taiwan a close informal ally, especially during heated disputes with China.

The fisheries breakthrough was received well in Taiwan, where President Ma Ying-jeou has been criticized for doing too little on diplomacy.

Anna Kao, spokeswoman for the Foreign Ministry in Taipei, says the fisheries deal followed Taiwan’s efforts to improve ties with Japan.

She says Taiwan has been gradually pushing for improved relations with Japan and only on that foundation were the two sides able to reach consensus on fishing rights. 

Taiwanese fishing boats have historically trawled the disputed waters that are 222 kilometers east of Taipei but would be turned away by Japanese coast guard vessels. Local media reported that the fishing industry was ecstatic about the rights deal as about 800 vessels make their way to the disputed ocean area every year.
Source: VOA

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Posted in: Asia,Japan,Society

Japan carmakers to recall 3.4m cars over airbag defect

Japan's top four carmakers are recalling a total of 3.4 million cars over a defect in passenger airbags.

In the UK, Toyota, Nissan and Honda are all recalling certain models

Toyota, which is recalling 1.73 million cars, said the vehicles had a defective part which "could cause the airbag inflator to rupture and deploy the airbag abnormally in a crash".

Globally, Honda is recalling 1.13 million cars, Nissan almost 500,000 and Mazda 45,000.

In the UK, Toyota, Nissan and Honda are all recalling certain models.

The cars were sold in the years 2000-04, and the firms said the defective part was supplied by parts maker Takata Corp.

UK models affected include:

• 76,000 Toyota vehicles, including Corolla and Yaris,
• 60,000 Nissans, including X-Trail, Patrol, Almera, Almera Tino, Terrano II and Navara
• and 15,400 Hondas, most of them CRVs, but including 400 Jazz and Civic models.

Nissan advised UK customers to contact garages where the cars were bought or call 01923 899334.

Global car giants are usually quick to recall vehicles for inspection and repair as soon as they are aware of a fault.

These generally tend to be minor and it is rare that they are linked to accidents or fatalities.

Shares in Takata fell 9% to 1,819 yen on the Tokyo Stock Exchange on Thursday.

Free replacement

Ryo Sakai, a spokesperson for Toyota, told the BBC that the firm had received reports of five separate incidents of the airbag inflator being ruptured.

Two of these incidents took place in Japan and three in the US, Mr Sakai said.

However, he added that there had been no injuries as a result of the incidents.

Meanwhile, Honda, Nissan and Mazda said that there had been no incidents involving their cars.

All four carmakers have said that they will replace the defective parts for free.

"We are conducting a voluntary safety recall to address this issue and replace the front passenger bag inflator," a spokesperson for Nissan told the BBC.

"We plan to notify the customers over the next 30 days," he added.

Source: BBC

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Posted in: Asia,Business,Japan,Toyota

North Korea warns foreign embassies to prepare escape

North Korea has told foreign embassies in Pyongyang it cannot guarantee their safety in the event of conflict, and to consider evacuating their employees.

Both Russia and the UK said they had no immediate plans to evacuate their embassies in the North Korean capital.
The North's move comes amid threats to attack US and South Korean targets.
South Korea has reportedly deployed two warships with missile defence systems after the North was said to have moved at least one missile to its east coast.
Military officials told South Korean media the two warships would be deployed on the east and west coasts.

Seoul has played down the North's missile move: It said the move may be for a test rather than a hostile act.

For its part, the US said it would not be surprised if North Korea were to conduct a new missile test, with White House spokesman Jay Carney telling reporters: "We have seen them launch missiles in the past."
Russia 'deeply concerned' British diplomats said on Friday the North had asked them to respond by 10 April on what support the embassy would need in the event of any evacuation - and they were considering their moves.
"We are consulting international partners about these developments," said a Foreign and Commonwealth Office statement. "No decisions have been taken, and we have no immediate plans to withdraw our Embassy."
Russian Foreign Minister Sergei Lavrov said Moscow was "deeply concerned about the escalation of tension, which for now is verbal".
"We want to understand the reasons behind this offer," he said. "We were interested in finding out whether this was a decision taken by the North Korean leadership to evacuate embassies, or just an offer."
Anecdotal reports from Pyongyang suggest the mood there is calm, and many believe North Korea is deliberately trying to create a sense of crisis, says the BBC's Lucy Williamson in Seoul.
One of the US targets named by Pyongyang was the Pacific island of Guam, which hosts a US military base.
On Thursday, the US confirmed it would deploy a missile defence system to Guam in response to the threats.

South Korea's foreign minister told MPs on Thursday that the North had moved a missile to the east coast, which is the location for previous military tests.

Unconfirmed reports on Friday said the North had moved two missiles - thought to be mid-range Musudans, which are untested in flight but are thought to have the capacity to reach as far as Guam - and loaded them on to launchers.
Yonhap, the South Korean news agency, said that two warships equipped with Aegis defence systems would monitor the situation.
'Turn down volume' Despite North Korea's belligerent rhetoric, it has not taken direct military action since 2010, when it shelled a South Korean island and killed four people.
But in recent weeks it has threatened nuclear strikes and attacks on the US and South Korea.
It has announced a formal declaration of war on the South, and pledged to reopen a mothballed nuclear reactor in defiance of UN Security Council resolutions.
Many of North Korea's angry statements have cited the annual military exercises between US and South Korean forces as provocation.
The US flew nuclear-capable B2 and B52 bombers over the South as part of the drill, and has since deployed warships with missile defence systems to the region.

Regional papers reflect on crisis

In South Korea

• Chosun Ilbo says: "The military has pledged to maintain a solid defence amid increasing threats from North Korea, but incident after incident shows how empty that pledge is."
• Joong Ang Daily writes: "The escalation of tension by the North has hardly affected the South. Pyongyang's provocations are aimed at consolidating Kim Jong-un's power base at home."

In Japan

• According to Yomiuri Shimbun: "Kim should be keenly aware that the pursuits of nuclear armament and economic reconstruction are incompatible."
• Asahi Shimbun writes: "The United States and its two regional allies, Japan and South Korea, should start working closely together in serious efforts to figure out the best way to deal with North Korea."

• How potent are threats?
• Missile programme

North Korea's official media say the US is surrounding the peninsula with a nuclear threat from land, sea and air.

Quotes from unnamed Pentagon officials suggest Washington is now questioning whether some of its actions may have contributed to the tension, with CNN quoting one official as saying the US would try to "turn the volume down" on its rhetoric.
Meanwhile, retired Cuban leader Fidel Castro has urged restraint on the Korean Peninsula in his first newspaper "reflections" piece for nine months.
Writing of the wider impact that a nuclear war could unleash in Asia and beyond, Mr Castro said Havana had always been and would continue to be an ally of North Korea, but asked it to consider the interests of its friends.
In recent weeks, the North has shut down an emergency military hotline between Seoul and Pyongyang and stopped South Koreans from working at a joint industrial complex in the North.
The Kaesong complex, one of the last remaining symbols of co-operation between the neighbours, is staffed mainly by North Koreans but funded and managed by South Korean firms.

 Source: bbc

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Posted in: Japan,Korea,Politics,USA,xã hội

China and Japan plan direct currency exchange agreement

China has been pushing for the yuan to become
an alternate reserve currency along with the US dollar

China and Japan have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade.

The deal will allow firms to convert the Chinese and Japanese currencies directly into each other.
Currently businesses in both countries need to buy US dollars before converting them into the desired currency, adding extra costs.
It is the latest step by China as it seeks a more global role for the yuan.
"Given the huge size of the trade volume between Asia's two biggest economies, this agreement is much more significant than any other pacts China has signed with other nations," Ren Xianfang of IHS Global Insight was quoted as saying by the Bloomberg news agency.
Source BBC

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Posted in: Asia,Business,Canada,Japan

Japan launches massive search for tsunami bodies

Japanese soldiers search a stream for missing people …

Soldiers prodded marshy ground with slender poles and cleared mounds of rubble by hand Monday as 25,000 troops mounted Japan's largest search yet for the bodies of nearly 12,000 people missing in last month's earthquake and tsunami.
The operation was the third intensive military search since the March 11 disaster, which splintered buildings, flattened towns and killed up to 26,000 people along Japan's northeastern coast. With waters receding, officials hope the team, which also includes police, coast guard and U.S. troops, will make significant progress during the two-day operation.
In the town of Shichigahamamachi, a line of about two dozen Japanese soldiers walked in unison across soggy earth and muddy pools, plunging their poles about 2 feet (60 centimeters) into the muck to ensure that they don't miss any bodies buried below.
The search focused on a marsh drained in recent weeks by members of the army's 22nd infantry regiment using special pump trucks.
Several dozen other soldiers cleared mountains of rubble by hand from a waterfront neighborhood filled with gutted and teetering houses. Four people in the neighborhood were missing, said 67-year-old Sannojo Watanabe.
"That was my house right there," he said, pointing to a foundation with nothing atop it.
He surveyed the neighborhood: "There's nothing left here."
In all, 370 troops from the regiment were searching for a dozen people still missing from Shichigahamamachi. The regiment had been searching the area with a far smaller contingent, but tripled the number of troops it was using for the two-day intense search, said Col. Akira Kun itomo, the regimental commander.
The search is far more difficult than that for earthquake victims, who would mostly be buried in the rubble, said Michihiro Ose, a spokesman for the regiment. The tsunami could have left the victims anywhere, or even pulled them out to sea.
"We just don't know where the bodies are," he said.
Bodies found so many weeks after the disaster are likely to be unrecognizable, black and swollen, Ose said.
"We wouldn't even know if they would be male or female," he said.
A total of 24,800 soldiers — backed by 90 helicopters and planes — were sent to comb through the rubble for buried remains, while 50 boats and 100 navy divers searched the waters up to 20 kilometers (12 miles) off the coast to find those swept out to sea.
"It's been more than a month since the massive earthquake and tsunami, but we still have lots of people still missing," Defense Ministry spokesman Norikazu Muratani said. "We want to recover them and return them to their families."
More than 14,300 people have been confirmed dead and nearly 11,900 remain missing. The military's first intense sweep for bodies uncovered 339, while its second turned up 99 more, Muratani said. Numbers for Monday's search were not immediately available.
After the 2004 Indian Ocean tsunami, bodies turned up along the Indonesian coast for several months afterward as people cleared debris in reconstruction efforts. However, 37,000 of the 164,000 people who died in Indonesia simply disappeared, their bodies presumably washed out to sea.
Last week, two undersea robots provided by the nonprofit International Rescue Systems Institute conducted five-day searches in waters off Japan's northeastern coast near three tsunami-hit towns.
The robots found cars, homes and other wreckage in the sea, but no bodies, said Mika Murata, an official with the institute.
The Japanese government has come under criticism for its response to the quake, tsunami and subsequent nuclear disaster, with some members of the country's opposition urging Prime Minister Naoto Kan to resign.
Members of Kan's ruling party won only three of 10 elections held over the weekend, mostly for local government posts.
The losses came two weeks after Kan's party lost nearly 70 seats in an election for prefectural assemblies.
On Monday, Kan stressed to a sometimes hostile parliament that his government was doing everything it could to gain control of the radiation leaks at the Fukushima Dai-ichi nuclear plant, which has prompted the government to evacuate residents from a 20-kilometer (12-mile) area around the crippled reactors.
"The nuclear accident is still ongoing," he said. "The top priority right now is to stabilize it."
___
Associated Press writer Shino Yuasa contributed to this report.

yahoo

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Posted in: Japan,Society

Japan Expands Evacuation Zone Around Nuclear Plant

Fukushima Daiichi nuclear power station

An evacuation advisory for areas near the crippled Fukushima Daiichi nuclear power plant was widened on Friday because of concerns about long-term radiation exposure. The move comes a day after Japan began legally enforcing a 20-kilometer exclusion zone around the power station.

The new advisory covers several towns northeast of the mandatory exclusion zone. Residents have been asked to leave the area within the next month.

Government officials say the danger is the gradual build-up of radiation that has been happening since the March 11 earthquake and tsunami damaged the Fukushima Daiichi nuclear power plant.

Residents could exceed the annual safe dose if they stay in the area.

Prime Minister Naoto Kan spoke about the advisory at a news conference.

Kan said the evacuation advisory is being done for the residents' safety. He warns that several additional towns might be asked to evacuate in the future.

The areas in question are largely agricultural and some people already have left. Around 7,000 are estimated to remain.

Kan, who visited evacuaee shelters in Fukushima on Thursday, also outlined some recovery goals.

He says government plans to build 30,000 temporary homes by the end of May. They will go some way toward housing the estimated 135,000 people still homeless because of the earthquake and tsunami. An additional 70,000 homes will follow.

Japan expects to issue bonds to help pay for the disaster, which left alsmot 28,000 people dead or missing. On Friday the country's cabinet approved an initial supplementary budget of $49 billion.

VOA

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Posted in: Health,Japan,Society

Japan Considers Clampdown on Returnees to Nuclear Zone

Japanese officials say they are considering steps to legally enforce an exclusion zone within 20 kilometers of the crippled Fukushima nuclear plant.

More than 60,000 people were evacuated from the zone shortly after the March 11 earthquake and tsunami that knocked out cooling systems at the plant. But Chief Cabinet Secretary Yukio Edano said Wednesday that some residents and others have been venturing back in spite of a government advisory to stay away.

Edano said the government is talking to local officials about ways to legally enforce the restriction. Press reports said Prime Minister Naoto Kan will likely announce the measures during a visit to the region on Thursday and that the restrictions could go into effect as early as this week.

At the plant, engineers have been working since Tuesday to pump more than 10,000 tons of highly radioactive water out of the basement and utility tunnel at one of the six reactors. Officials said water levels in the tunnel -- which had been rising about two centimeters a day -- were down about one centimeter Wednesday morning.

A French company, Areva, has contracted to build a facility at the plant capable of decontaminating 50 tons per hour of water so it can be recycled to keep the plant's nuclear fuel rods from overheating. Officials hope to have the facility in operation by the beginning of June.

Officials with the Tokyo Electric Power Company, the plant's operators, released the first photographs from inside two of the badly damaged reactor buildings on Wednesday. The pictures were taken by remote-controlled robots sent in to measure radiation levels to determine whether humans can safely go back inside.

Japan's NHK Television said the robots' access to one of the buildings was hampered by debris. At another building, the interior was so steamy that the camera lens immediately fogged up.

The Kyodo news agency quoted a doctor who has examined some of the men struggling to stabilize the plant saying the men are at risk of depression or death from overwork. The doctor said the workers, some of whom lost their own family members in the tsunami, are pushing themselves out of a sense of moral responsibility.

Despite the problems, an official at the International Atomic Energy Agency said Tuesday in Vienna that radiation levels leaking from the plant are coming down steadily. IAEA expert Denis Flory said that unless something unexpected happens, he does not expect total radiation leaking into the environment to increase much beyond current levels.

The Japanese government has for the first time set radiation safety levels for school playgrounds in the prefecture surrounding the plant. It said normal playground activities should be allowable if radiation remains at current levels.

National police said late Tuesday that the confirmed death toll in the earthquake and tsunami has now topped 14,000, with more than 13,600 others still missing. It said more than 90 percent of the victims recovered so far died from drowning, and that more than 65 percent of them were over age 60.

Source: VOA

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Posted in: Japan,Society

Japanese exports fall 2.2% in March due to tsunami

The north-east of Japan, where major manufacturers have factories has seen major damage

Japanese exports fell more than expected in March, as damage from last month's earthquake and tsunami affected shipments.

According to the finance ministry exports declined 2.2% from a year earlier, the first drop in 16 months.
Shipments of cars tumbled 28% as the sector continued to be hit by shortfall of parts and slowdown in production.
The earthquake and tsunami has damaged factories and disrupted the supply chain.
Shipments of semiconductor products and electronics also fell by 6.9%.
For Japan's two major export destinations, shipments to the US declined 3.4% from the previous year, while shipments to China rose an annual 3.8%.
Analysts say the disruption in the supply chain is making it difficult for Japanese manufacturers to get back on track.
"It is very frustrating for automakers and other manufacturers," said Hiroshi Watanbe of Daiwa Institute of Research.
"Despite steady demand abroad, they simply could not make their products due to a supply crunch following the disasters," he added.

"There hasn't been much progress in restoring factory output, so exports will fall in April"Yoshiki Shinke Daiichi Life Research Institute

Worsening situation

While the Japanese economy struggles to deal with the effects of the earthquake and tsunami, analysts warn that the situation could get worse in the coming months.

They say the current numbers are not a true indicator of the full impact of the devastation on the country's exports, as many manufacturers would have used up existing inventories.
"At least for March, some manufacturers were able to keep limited output by relying on stock. But by now, stock will be gone, forcing companies to completely shut down production," said Hajime Inoue of Japan Research Institute.
Mr Inoue warned that the fall in exports could widen to as much as 20-30% in the coming months.
Analysts say that while the country has been grappling with the aftermath of the earthquake and tsunami, much works needs to be done before manufacturers can start operating at full capacity.
"There has also been damage to infrastructure, like ports and airports," said Yoshiki Shinke of Daiichi Life Research Institute.
"There hasn't been much progress in restoring factory output, so exports will fall in April," he added.
Power problems

 One of the biggest issues crippling Japan's component makers is the shortage of power.

The earthquake and tsunami has resulted in a shortage of electricity supply in Japan

Last month's earthquake and tsunami has caused damage to nuclear and conventional power stations in the country, resulting in electricity supply shortages.
Japanese manufacturers are having to come up with measures to keep their production lines running while trying to cope up with a shortfall in power supply.
The situation is likely to become more complicated as the demand for electricity reaches its peak in the coming summer months.
Analysts say that is going to affect shipments from the country.
"Due to power supply constraints expected in the summer, a full pick up in exports is unlikely until at least the end of this year," said Yuichi Kodama from Meiji Yasuda Life Insurance.

Source BBC

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Posted in: Japan,Society