According to METI, industries such as general machinery, transport equipment, information and telecommunications electronic equipment in that order where the main contributors to the decline.

Shipments fell 1.9% in September, but climbed 2.1% for the year, and inventory increased 1% from previous month. However, the survey of production forecast in manufacturing showed production is expected to increase 3.8% in October and 0.7% in November.

Kyodo News reported today Land, Infrastructure and Transport Minister Tetsuzo Fuyushiba has raised concern over the acquisition of a 19.89% stake in Japan Airport Terminal Company by Macquarie Airports Management Limited of Australia.

Of the index shares, Honda Motor Corp led gainers, with a rise of 8.89%, followed by gains of 8.81% in Sony Corp, 8.74% in Softbank Corp, 7.27% in Matsushita Electric and 5.57% in Mitsui &Co.

Honda Motor Corp gained on strong second quarter performance. Operating profit rose 63% to 208.5 billion yen on weaker yen in the quarter and increased sales of fuel efficient Civic and Accord. The two models managed to lure customers from U.S. companies General Motors Corp and Ford Motor Corporation whose strength is in pick up cars and SUVs.

Honda projected operating revenues will rise by 10.9% in the fiscal year ending March 31 to 12.3 billion, while operating income is projected to soar 3.3% to 880 million yen. Net income is forecasted to rise 8% to 640 million yen. The company is planning a 22 yen dividend per share in the quarter and a full year dividend of 88 yen per share.

Sony also leapt after third quarter net income rose to 73.7 billion yen from 1.7 billion yen a year earlier spurred by 12% rise of sales to 2.08 trillion yen. Profits in the consumer electronics division climbed 106.9 billion compared to 8 billion yen a year earlier. The movie division jumped 2.7 billion in operating profit against to a 15.3 billion-yen loss a year before after the production of “Spider-Man 3” and “Resident Evil: Extinction”. Sony Financial Services, the largest IPO in Japan in 2007, is projected to generate 11 billion yen to profit during the quarter.

Ricoh Company Limited led decliners, falling 4.20%, followed by losses in Resona Holdings of 3.87%, in Toyo Seikan of 3.84%, in Shinsei Bank Limited of 3.66% and Nippon Soda Company of 3.29%.

Daiwa Securities reported today second quarter net profit declined 14% from 17 billion yen last year to 14.7 billion yen for the three months ending September 30. While revenues were unchanged at 211.7 billion yen, equity underwriting shares fell from 12.5 billion yen a year ago to 6.4 billion yen in the second quarter.

Mizuho Securities also reported today it experienced a net loss of 27.06 billion yen from a profit of 11 billion yen in the six months to September due to investment losses tied to the U.S. housing slump.

Nikkei reported today Sumitomo Mitsui Financial Group’s consolidated net profit is expected to fall 20% from 220 billion yen forecasted for half year to September. The stock advanced 1.21% on the rally in financial stocks.

Nissan Motor Corp said today operating profit rose 12% to 218.7 billion yen in the second quarter, buoyed by 13% increase in sales to 2.62 trillion yen as the company managed to gained new customers with its Qashqai SUV in Russia and Ukraine. The company currently has a six months backlog for the model in Russia, Ukraine and Northeastern Europe. Overseas sells in China and the Middle East rose 25 % and 21% respectively helping to offset a 7.2% decline in domestic sales.

Mobile company NTT DoCoMo released results today that showed net income fell 15% to 123.7 billion yen from 146.3 billion yen a year earlier as price were cut by 50% and 1.1 million customers defected from the mobile company. Operating profit dropped 16% to 204.6 billion yen. Sales dropped 1.9% to 1.14 trillion yen. The company said annual profits might miss target by 1.3%. NTT DoCoMo will be merging eight subsidiaries to enhance operational efficiency.