Nikkei rises after jobless data, Panasonic plunges
(Updates to midmorning)
By Rika Otsuka
TOKYO, Nov 28 (Reuters) - Japan's Nikkei average edged up 0.6 percent on Friday after an unexpected fall in the unemployment rate in October, but a plunge in Panasonic Corp (6752.T) limited the advance for the broader market.
Shipping firms such as Kawasaki Kaisha Kisen (9107.T) and construction machinery companies such as Komatsu Ltd (6301.T) led gains, extending advances made a day earlier on hopes that a interest rate cut by China would help its economy.
Panasonic, the world's No.1 plasma TV maker, dived nearly 11 percent after cutting its annual net profit forecast by 90 percent and announcing plans to restructure as the global financial crisis dampens sales of TVs and other electronics. [ID:nLR132843]
"Panasonic's earnings forecasts underscored the deteriorating health of the economy," said Terushi Hirotama, head of trading at Ichiyoshi Securities.
"Until recently, investors had believed that Panasonic could withstand the downturn. But now, investors are saying 'Panasonic. You too?'"
Japan's seasonally adjusted unemployment rate unexpectedly fell to 3.7 percent in October, down from 4.0 percent in September, government data showed on Friday. [JPUNR=ECI]
But other data showed Japanese industrial production dropped sharply in October, prompting warnings that Japan's recession will be even deeper and longer than previously thought. [ID:nT133784]
The benchmark Nikkei .N225 climbed 53.39 points to 8,426.78 after rising 2.0 percent the previous day.
The broader TOPIX index was little changed on the day at 828.83.
Kawasaki Kisen climbed 5.2 percent to 384 yen and Komatsu rose 4.9 percent to 1,123 yen.
JFE Steel Corp, the world's third-largest steelmaker, said on Friday it was considering building a plant to process iron ore in the Middle East. [ID:nT151523]
JFE Holdings (5411.T), the parent company of JFE Steel, rose 4.4 percent to 2,255 yen.
Panasonic fell 10.8 percent to 1,146 yen. (Reporting by Rika Otsuka, Editing by Edwina Gibbs)
