By Jake Maxwell Watts
The Japanese yen fell to its weakest level against the U.S.
dollar since 2008 early Friday, while government data showed that
consumer prices rose in November, bolstering growing optimism that
the country is on track to shake 15 years of deflation.
The yen (USDJPY) extended its recent trend and briefly traded at
Yen105.02 against the U.S. dollar -- a level not seen for five
years -- before strengthening slightly to change hands at
Yen104.93.
Early data from Japan showed consumer prices rising 1.2% on-year
in November, above the 1.1% increase expected by economists. That
marked the sixth straight month of price rises and brought the
country closer to the 2% inflation target pledged by the government
and the Bank of Japan. Strong inflation data should push up
expectations that the economy is back on track, reducing the chance
that the Bank of Japan would increase its stimulus measures to
weaken the yen further than it has already.
Other data showed that industrial production rose 0.1% on month
in November, below the 0.3% rise expected by economists. Retail
activity accelerated, with sales growing 4% from a year
earlier.
Despite a weak yen, the benchmark Nikkei Stock Average lost
ground, retreating 0.5% from a six-year high to trade at
16,094.1.
Many large-cap stocks still gained. Telecommunications provider
SoftBank Corp. (9984.TO) was 1.7% higher, while auto parts
manufacturer Denso Corp. (DNZOF) added 2.4%. Among losers were Fast
Retailing Co. (FRCOY), down 0.4%, and Takeda Pharmaceutical Co.
(TKPHF), which lost 4.7% a day after announcing that it would stop
producing fasiglifam, a diabetes drug, due to concerns about
patients' liver safety.
Most other stock indexes were also lower early Friday. Korea's
Kospi lost 0.2% to 1,995.7, while New Zealand's benchmark was down
0.3%.
Australia's S&P/ASX 200 was the exception, trading up 0.3%
on the strength of stocks such as miner Rio Tinto Ltd. (RIO), which
gained 1.1%.
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