"There are no positive signs in Japan's economy"
- Azusa Kato, an economist at BNP Paribas SA
The total number of people on welfare in the world's third biggest economy rose more than expected in August, a negative sign for the struggling nation's economy. The welfare ministry said that there were 6,342 more people on welfare, reaching a record high of 2.13 million people. At the same time, the number of households with one or more recipients soared 5,230 to 1.56 million, also jumping to a new high.
"There are no positive signs in Japan's economy," as domestic demand slumps and external demand remains weak, said Azusa Kato, an economist at BNP Paribas SA in Tokyo. "The economy will probably contract for two consecutive quarters through the end of the year."
"There's a high chance that Japan's economy will have two consecutive quarters of contraction through December," said Yoshimasa Maruyama, chief economist at Itochu Corp. in Tokyo.
The Nikkei 225 Stock Average gained 1.56 per cent, or 144.28 points, to 9,366.8. The broader Topix Index surged 1.23 per cent, or 9.42 points, to 776.43.
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