5:00AM New York, 7:00PM Tokyo – Japan unemployment increased to 5.3% in September and consumer prices declined 2.2% from a year ago in the month. Nikon Corp increased after it lifted its outlook. Takeda Pharmaceuticals after its first half income surged. Sumitomo Trust & Banking first half net fell 33%. The Bank of Japan plans to discontinue purchase of corporate bonds.

Japanese stocks rose 1.5% helping the index pare its loss for the month to 1.7% as a raft of government reports indicated that the economy is on the rebound.

The unemployment rate eased to 5.3% in September and consumer price index dropped 2.2% in the month, according to two government reports.

Earnings from Takeda Pharmaceuticals and Sharp Corp. also strengthened market sentiment.

In Tokyo trading Nikkei 225 Index gained 1.5% or 143.64 to 10,034.74, falling 1.7% for the month, and the broader Topix Index jumped 1.4% to 894.67.

In the first section of the Tokyo Stock Exchange 8.9 billion shares worth 648 billion yen traded and in the second section 337 million shares valued at 3.5 billion yen changed hands.

Of the Nikkei 255 index stocks, 169 rose, 44 declined, and 12 were unchanged. Olympus Corp. led gainers in the index shares with a rise of 9.2% followed by Nisshinbo Holdings increasing 7.5%.

Unemployment Rates Falls to 5.3%

Japan’s statistics bureau reported today the number of unemployed person rose 33.9% to 3.63 million from the previous year. The seasonally adjusted unemployment rate eased to 5.3%.

In addition, the number of employed persons declined 1.5% to 69.95 million from a year earlier.

CPI Falls 2.2%

Separately, the statistics bureau revealed that the consumer price index for Japan dropped 2.2% to 100.4 from a year ago, but remained flat from a month earlier.

Food prices fell 0.2% from August and declined 0.5% from the same period a year ago and home prices were unchanged from a month ago and fell 0.2% from a year earlier.

Fuel, light and water charges dropped 0.5% from a month earlier and declined 9.1% from a year ago.

Consumer prices in the Ku-area of Japan- a harbinger of prices in Japan- fell 0.4% from September and fell 2.4% over the year to 99.4 in October.

Food prices tumbled 1.7% in the month and plummeted 2.9% over the year.

Japan’s Consumption Expenditures Rise 1% in September

According to the bureau, the average of monthly consumption expenditures per household rose 1% to 277,110 yen in real terms.

Average monthly income per household fell 0.1% from a year ago to 422,120 yen and average consumption expenditures rose 0.6% from a year ago to 301,796 yen.

Bank of Japan Stops Buying CP, Bonds

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