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  1. 1. As of 11 a.m. ET DJIA 11525.25 À 0.41% FTSE 100 5951.80 À 1.02% Nikkei 225 10370.53 À 1.51% Shanghai Comp. 2904.11 À 1.79% Hang Seng 22993.86 À 1.57% Sensex 20060.32 À 0.86% S&P/ASX 200 4771.86 À 0.74% OPINION: China’s new U.S. cracks down on China listings row with BUSINESS & FINANCE Page 17 the VaticanKKDN PPS 648/11/2010 (028507) Malaysia: RM6.00, Pakistan: Rs140.00, Philippines: Peso80.00, Singapore: S$4.00(Incl GST), Sri Lanka: Slrs180(Incl VAT), Taiwan: NT$60.00, Thailand: Baht50.00, Vietnam: US$2.50 Australia: A$6.00(Incl GST), Brunei: B$7.00, China: RMB25.00, Hong Kong: HK$18.00, India: Rs25.00, Indonesia: Rp18,000(Incl PPN), Japan: Yen500(Incl JCT), Korea: Won2,500, Page 11KKDN PP 9315/10/2010 (025811) VO L . X X X V N O. 8 1 * * Wednesday, December 22, 2010 ASIA (India facsimile Vol. 2 No. 142) Russia signs Pricey onions cause tears in India KoreansMICA (P) NO. 164/10/2010 less keen several pacts to humorSK. MENPEN R.I. NO: 01/SK/MENPEN/SCJJ/1998 TGL. 4 SEPT 1998 with India the North BY EVAN RAMSTAD BY TOM WRIGHT In return, New Delhi wants better access to Russia’s oil SEOUL—South Korea NEW DELHI—India and and gas industry, and support called North Korea’s bluff by Russia signed a number of for its bid for a permanent staging a military drill in the economic and defense agree- seat on the U.N. Security face of threats this week, but ments, as Moscow moved to Council. The latter effort South Koreans are now more shore up its relationship with could take years and faces un- wary about their belligerent New Delhi, an old ally that certain prospects, but India’s neighbor and less willing to also has been courted in re- pursuit of permanent mem- tolerate the North’s fits of ag- cent months by the U.S., U.K., bership underscores its global gression. France and China. ambitions. South Korea’s military re- President Dmitry Medve- Mr. Medvedev on Tuesday mained on high alert Tuesday dev arrived in India for two offered an endorsement of In- for another attack by North days of talks, making him the dia’s U.N. ambitions. “Russia Korea, even after Pyongyang fifth and final leader from a considers India a strong and backed off threats it made nation with a permanent seat deserving candidate to have a over the South’s artillery test on the United Nations Secu- permanent seat on the United Monday. rity Council to visit the South Nations Security Council,” he A few residents of the is- Asian country in 2010. said in a joint news confer- land where the drill occurred, Moscow is eager to boost ence with Indian Prime Minis- called Yeonpyeong, returned its trade with India—the ter Manmohan Singh. home for the first time since world’s No. 2 fastest-growing U.S. President Barack the North’s Nov. 23 attack, major economy after Obama also backed India for a which happened after a previ- China—especially through ex- permanent seat during his ous artillery drill. Two ma- panded exports of defense trip to India in November. rines and two civilians died in and nuclear equipment. Rus- China’s Premier Wen Jiabao, the attack. sia’s two-way trade with India in India last week, said only Even so, one of the linger- totaled $4.6 billion in the year that Beijing understands In- ing effects of the attack and Reuters to March 31, a decline of 16% dia’s desire to play a bigger Please turn to page 16 from the prior year and only a role at the U.N., including on A worker packs onions in Chandigarh in northern India on Tuesday. Indian regulators said they tenth of China’s bilateral the Security Council. believe skyrocketing prices for onions—seen as a bellwether for general inflation—should ease after China asks for damages from trade with India. Please turn to page 16 the federal government this week suspended onion exports until Jan. 15. See Seoul in fishing clash ........... 16 Hong Kong housing may be cooling BY ALICE TRUONG by an influx of so-called hot developer has sold only 25 money from China—specula- more flats. Cheung Kong de- HONG KONG—Signs are tive capital that evades Chi- Steep rise clined to comment. mounting that government nese regulators, who keep Price index for all residential “Cheung Kong has a his- measures aimed at taking the tight controls on the currency. properties in Hong Kong tory of clearing the entire de- speculative heat out of Hong Property prices in Hong 160 velopment within weeks of its Kong’s residential-property Kong have surged in response, launch,” says Paul Louie, an market are pushing some buy- especially in the luxury sector. 150 analyst at Nomura Holdings. ers to the sidelines, hitting Home prices rose 15% through 140 “This was not in character sales of some big new proj- September, after a 30% jump with what they usually do.” ects. in 2009, according to official 130 Similarly, Swire Proper- The government’s moves data. Data showing the impact 120 ties has seen a slowdown in to combat surging home of the new measures aren’t sales for its high-end residen- prices, including hefty taxes yet available, but a dropoff in 110 tial project Azura in the Mid- for selling an apartment activity is already apparent at 100 Levels district of Hong Kong within two years of its pur- some projects being sold. 2009 ’10 island. The development, chase, took effect a month That includes Festival City Note: August through October 2010 which launched Nov. 20 and ago. The measures, the latest II in the Tai Wai section of figures are provisional. saw one apartment fetch 58 Source: Hong Kong Census and in a series of market-cooling Hong Kong’s New Territo- Statistics Department million Hong Kong dollars moves, came after the Inter- ries—one of the largest resi- (US$7.5 million), sold 28 of its national Monetary Fund in dential developments first batch of 51 units within November urged the govern- launched in the autumn. Peo- Cheung Kong Holdings Ltd., the first two days, according ment to take action if asset- ple in the market are taking sold 216 of its 1,386 units to Swire’s records, but has price inflation continued, their time, says property con- when sales began Nov. 19, the sold only three since. Swire warning that it saw increasing sultant Jay Leung: “They’re day before the cooling mea- declined to comment on its risk of a property bubble in stopping to think” before sures took effect, according to sales. Hong Kong. The curbs were making a purchase. Credit Suisse. Since then, Since the cooling measures also prompted in large part Festival City II’s developer, Credit Suisse estimates the Please turn to page 29
  2. 2. 2 * * THE WALL STREET JOURNAL. Wednesday, December 22, 2010 PAGE TWO What’s News— Inside i i i Business & Financen New York’s attorney generalfiled a suit against Ernst & Young,accusing the accounting firm ofhelping Lehman hide its financialweakness from investors for aboutseven years before the investmentbank collapsed in 2008. 17n U.S. stocks rose as news thatCanada’s Toronto Dominion willbuy Chrysler Financial led to hopefor more financial-sector take-overs. Auto shares rose in Asia as Business & Finance:Korean tensions eased. 25 Toshiba wants backn The U.K. government said Busi- its 3-D advantage. 18ness Secretary Vince Cable wouldplay no part in a key regulatorydecision regarding Rupert Mur-doch’s News Corp. amid a politicalfirestorm that erupted when hewas caught saying he had “de-clared war” on Murdoch. 20n Philippine Finance SecretaryPurisima said Filipinos need toprepare for a long period of U.S.dollar weakness by starting newbusinesses to spur the economy. 4n The SEC is cracking down on Xinhua/Zuma PressChinese firms that use mergers Technology: Googlewith dormant shell companies toobtain listings in the U.S. 17 Chrome OS makes push into cloud. 9n The U.S. slapped Toyota with China said it will raise gasoline and diesel prices by 3.8% and 4%, respectively, beginning Wednesday in the face of rising$32.425 million in civil penalties crude-oil prices, despite persistent worries about inflation. The increase marks the second in nearly two months. Above, afor failing to properly disclose woman refuels a vehicle at a gas station in Linyi, in Shandong province. Page 4what it knew about safety defectslinked to recalls. Separately, Toy- n China said it supports measures for new listings on the small-cap n Iraq’s parliament officially ap-ota is targeting vehicle sales taken by the EU and IMF to bail Mothers market. 22 proved a second term for Malikigrowth of 3% next year. 17, 20 out certain European countries and his partial cabinet line-up, and stabilize financial markets. 4 n Volkswagen signed a pact with ending a political impasse thatn Moody’s said it may lower Por- DRB-Hicom to assemble vehicles stretched for nearly 10 months.tugal’s credit rating by as much as n European regulators relaxed in Malaysia. 20two notches, adding that the euro tight inspection rules covering n China demanded compensationzone as a whole “retains signifi- Rolls-Royce engines on Airbus n State Grid Corp. of China will from South Korea over a recentcant financial strength.” 6 A380 superjumbo jets. 19 pay nearly $1 billion to buy seven clash in the Yellow Sea. 16 Brazilian power distributors, then The Fed is renewing a pact n Lend Lease agreed to buy Vale- latest bet by a Chinese company n Thailand will lift a state ofwith the ECB and other central mus Australia from Bilfinger on South American growth. 18 emergency Wednesday that wasbanks to lend them dollars as the Berger for $957 million. 20 imposed in April when protesters In Depth: Odds skewcost of swapping euros into the i i i overran Bangkok, but it will retainU.S. currency rises in Europe. 22 n Satyam will seek to list again World-Wide broad powers to detain suspects against investors in on the NYSE after filing its results and impose order. life insurance. 14n The BOJ governor pledged to based on U.S. accounting stan- n Australia’s severe weatherwatch for any impact of climbing dards. 19 could be a drag on economic n A suspicious package wasbond yields on Japan’s economy, growth, as the worst floods in 20 found in a subway car in Rome,as the central bank kept its mone- n Tokyo’s stock exchange will years ravage crops and disrupt prompting a scare, but the city’stary policy unchanged. 5 speed up the screening process mining across the country. 3 mayor said the device was a fake. ONLINE TODAYMost read in Asia Exchange Korea Real Time Scene Asia Global fund Vote for your favorite managers plan to luxury abode from Heard on the Street: increase allocations among the top eight Hyundai Motor needs to Chinese equities ‘Home of the Week’ to refocus. 301. North Korea Backs Down, HoldsIts Fire next year. features. THE WALL STREET JOURNAL ASIA2. Opinion: FCC’s Threat to According to a poll by CLSA Asia- Dow Jones Publishing Company (Asia)Internet Freedom Pacific Markets 25/F, Central Plaza, 18 Harbour Road, Hong Kong Tel 852-2573 7121 Fax 852-2834 52913. Your Apps Are Watching You www.wsj-asia.com4. In China, Cars on a Budget SUBSCRIPTIONS and Address Changes, please5. Firing Drill Increases Korea telephone our local customer service hotline, HongTensions Kong/Taiwan: 852-2831 2555; Beijing: 86-10 6581 4090; Shanghai: 86-21 5836 8228; Indonesia: 62-21 527 7592; Japan: 81-3 6269-2760; Korea: 82-2 756 1695;Most emailed in Asia Malaysia: 60-3 2026 4061; Philippines: 63-2 848 5873; Singapore: 65-6415 4000; Thailand: 66-2 652 0871;1. Your Apps Are Watching You India: 91-11 6462 0215. Or email: service@wsj-asia.com2. Opinion: FCC’s Threat ADVERTISING SALES worldwide through Dow Jones3. A No-Yuan Approach to Bonds South Korea combats International. Hong Kong: 852-2831 2504; Singapore:4. Phone-Wielding Shoppers Strike cyberbullies with sunshine 65-6415 4300; Tokyo: 81-3 6269-2701; Frankfurt: 49 69 29725390; London: 44 207 842 9600; Paris: 33 1 40 17Fear Into Retailers 17 01; New York: 1-212 659 2176. Or email:5. Ernst & Young Faces Fraud policy. Trademarks appearing herein are used under license fromCharges korearealtime Dow Jones & Company. 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  3. 3. Wednesday, December 22, 2010 THE WALL STREET JOURNAL. 3 WORLD NEWSAustralia’s rains threaten growth Australia’s economy is riding wheat with domestic consumption dustry economist at Australia &high on the mining boom, but se- of only about seven million tons, New Zealand Banking Group Ltd.,vere weather could be an unfore- leaving the remainder typically Wetter than expected who said she fears the nation’s eco-seen drag on growth, as the worst available for exports. Australia’s total rainfall in December nomic growth could be crimped byfloods in 20 years ravage crops and The heavy rains also have dis- the flooding in the December quar-disrupt mining across the country. rupted the sugar-cane harvest, driv- Rainfall ter. ing raw sugar output down 20%, ac- 600 mm The severe flooding is affecting By Rebecca Thurlow in cording to government estimates. Pilbara region coal mining in central Queensland. 400 Sydney and Ray Brindal in Australia is the third-largest ex- Several miners in the region have Canberra porter of sugar after Brazil and 300 called force majeure—or unavoid- Thailand. 200 able failure to meet an obliga- Authorities have declared natu- The September-to-November pe- tion—on deliveries because ofral-disaster zones in more than 100 riod was the wettest ever recorded, 100 floods, and the inability of miners toregions across five states, as flood- and above-average rainfall has con- 50 produce coal is depleting stockpiles,ing over the past three weeks has tinued into December, according to according to Greg Smith, general 25brought a dramatic end to a decade- the Bureau of Meteorology. The manager, operations, at Dalrymplelong drought in some areas. The ter- rainfall is associated with the 10 Bay Coal Terminal, one of the big-ritory hardest hit is prime agricul- weather pattern in the Pacific Basin gest coal ports in the world. “The 5tural land in the Murray-Darling ba- known as La Niña that is conversely Murray Darling Basin mine supply problem is the biggestsin, which spans parts of helping create a drought hitting 1 issue,” said Mr. Smith, adding thatQueensland, New South Wales and farmers in parts of New Zealand. 0 one area in the port’s hinterland re-Victoria states, covering an area Weather woes such as the cur- ceived 210 millimeters, or 8.4bigger than Germany. rent disturbance in Australia con- Source: Australia’s Bureau of Meteorology inches, of rainfall in four hours on Rain damage will result in about tinue to present a risk to global food Sunday. “A lot of these mines arehalf of Australia’s estimated 24-mil- supply. The past year has been one open pits, which become openlion-metric-ton wheat crop being of extremes for agriculture markets, and saw the country ban exports for largest grains exporters propelling swimming pools.”classified as suitable for livestock roiled by droughts, floods and unex- the year in a bid to curb food infla- prices higher and hurting trade The flooding has helped drive upfeed or downgraded this year, at a pected weather patterns playing tion as prices soared. A similar pic- flows around the world. coal prices. Prices are at their high-cost of nearly US$1 billion, National havoc with crop seasons. The hot- ture was seen in neighboring The rains are “certainly going to est level since late 2008.Australia Bank Ltd. estimates. Aus- test summer in 130 years plunged Ukraine, with the effect of reduced have an effect on a range of indus- —David Fickling in Sydneytralia is a major global supplier of Russia’s grains sector into turmoil supplies from two of the world’s tries,” said Julie Toth, a senior in- contributed to this article.
  4. 4. 4 THE WALL STREET JOURNAL. Wednesday, December 22, 2010 WORLD NEWS: ASIAPhilippines plans for weak dollarBY JAMES HOOKWAY rencies, which now translate into fewer pesos than they used to. MANILA—Philippine Finance Stronger peso However, Mr. Purisima said aSecretary Cesar Purisima said that How many Philippine pesos one stronger peso also is reducing infla- Cesar Purisima,Filipinos need to prepare for a pro- dollar buys tion and interest rates, potentially Philippineslonged period of U.S. dollar weak- making it easier for Filipinos to es- 48 secretary ofness by taking advantage of lower tablish new businesses. “People financeinflation and interest rates to start should try to become more entre-new businesses that will help drive 46 preneurial, and the department ofthe economy and lead to less reli- finance is working with other gov-ance on remittances from overseas ernment agencies to encourage that.workers. 44 In the future, if we are to sustain In an interview on Tuesday, Mr. growth, we need to find ways toPurisima said the country is trying help people do more here because 42to reduce its dependence on foreign- we can’t rely on remittances for-denominated debt and will continue ever.”recent efforts to replace it with Phil- 40 Still, remittances have affordedippine peso bonds. the Philippines a degree of comfort. 2010 Mr. Purisima said the Philippines Many of its overseas workers are Sources: Thomson Reuters via WSJ Marketis looking again to issue peso-de- Data Group; Bloomberg News (photo) employed in areas relatively resil-nominated bonds “in the next few ient to the impact of global eco-weeks” to finance the government’s nomic shocks, such as education and2011 budget. largest issuer of sovereign debt, also countries seeing strong currency sos. health care. In 2009, the country’s Refinancing the Philippines’ debt saw Standard & Poor’s upgrade its fluctuations this year, as investors “We have to be honest about the 10 million or so overseas workersin pesos potentially provides the ratings on the country’s sovereign have moved out of dollar-denomi- consequences of that and educate sent back about $18 billion, roughlyeconomy with a greater degree of debt to double-B from double-B-mi- nated assets and into Asian markets. people about what’s going on,” said 5% more than sent in 2008. In thestability and protects it from for- nus in November. While tensions on the Korean penin- Mr. Purisima, who became finance first 10 months of this year remit-eign-exchange risk. “We are seeing a fundamental sula and worries about the stability minister six months ago after the tances, were up 8%, to $15.46 bil- National Treasurer Robert Tan, shift in the global economy,” Mr. of countries on the periphery of the election of Benigno Aquino III as lion, compared with last year’s pe-meanwhile, said at least five inter- Purisima said in a telephone inter- euro zone have shored up the dollar president. riod.national banks have offered to un- view from Singapore. “The opportu- in recent weeks, many economists Remittances from overseas Mr. Purisima said the Philippinedertake the fund raising for a peso nities in Asia, where we are, are go- expect a steady appreciation in the workers drive a large proportion of government’s finances also shouldglobal bond after an initial peso ing to be greater, and the money is value of the peso to continue household spending in the Philip- provide fresh comfort for investorsbond in September raised $1 billion flowing our way. We’ll try to take through 2011, with some expecting pines, but much of the money Filipi- and entrepreneurs after the countryand attracted demand of around advantage of it.” it to reach 40 pesos to the dollar, nos send home is earned in euros, in posted its second consecutive$13.5 billion. The Philippines, Asia’s The Philippines is one of several compared with Tuesday’s 44.20 pe- U.S. dollars or in dollar-pegged cur- monthly budget surplus.China raises fuel prices as inflation looms BEIJING—China will raise gaso- China has taken steps in recent mula when it might have meant ma- increase until now and has also con- prices, on Oct. 26, benchmark Newline and diesel prices by 3.8% and weeks to curb inflation, including jor price increases. trolled the magnitude of the price York Mercantile Exchange light,4% respectively beginning Wednes- price controls, lending limits and in- China will raise gasoline and die- increase due to inflation and fuel- sweet crude futures were aroundday in the face of rising crude-oil creased bank reserve requirements. sel prices by 310 yuan and 300 yuan supply issues, it said without elabo- $83 a barrel, compared with just un-prices, despite persistent worries Officials hope to bring the economy ($46.53 and $45.02) a metric ton, ration. It said it expects China’s reli- der $90 Tuesday.about inflation. in for a soft landing after spending the commission said. That repre- ance on petroleum imports to be at China took a series of measures The increase—announced late billions on stimulus measures to sents a gasoline price increase of nearly 55% in 2010. in November to rein in the prices ofTuesday by China’s National Devel- spur growth during the global eco- 0.23 yuan a liter, or about 13.1 U.S. China will continue to subsidize agricultural commodities, includingopment and Reform Commission, nomic slows. China’s fuel-price rise cents a gallon. Diesel will rise by farmers, the fishery, forestry and price controls and releasing statethe nations economic planning will add to 0.07% of a sequential in- 0.26 yuan a liter, or 14.8 cents a gal- public transportation, the commis- reserves of some goods. China’s cen-body—marks the second increase in crease in consumer price index in lon. The price applies to what’s sion said. It won’t raise prices of ur- tral bank has raised banks’ reservenearly two months. It also comes af- December, the commission said. known as ex-factory production—ac- ban and rural public transportation, requirement ratio six time this year,ter China posted a 5.1% rise in con- Beijing controls fuel prices using tual retail prices at the pump vary including buses, train and air trans- indicating rising concern about in-sumer prices in November, the big- a basket of international crude by region and market. port after the price increase, it said. flation and excess liquidity.gest rise since July 2008. types but has veered from the for- The commission postponed the When China last adjusted fuel —Wan Xu and Liu LiBeijing backs EU bailouts, voices caution on effectsBY OWEN FLETCHER Last week, EU leaders met inAND AARON BACK Crucial partners | EU’s trade with China Brussels and agreed to replace the region’s emergency rescue fund, BEIJING—Chinese Vice Premier Exports to China Imports from China which expires in 2013, with a per-Wang Qishan said China supports manent crisis-finance program, inthe measures taken by the European €250 billion the latest move to rescue euro-zoneUnion and International Monetary countries facing debt crises.Fund to bail out certain European 200 While both Chinese and EU offi-countries and stabilize the financial cials lauded the benefits of closermarkets. 150 economic cooperation Tuesday, they Speaking at the third EU-China also aired complaints about each 100High Level Economic and Trade Dia- other’s trade practices.logue on Tuesday, Mr. Wang said 50 Mr. Chen said there has been anChina hopes the effects of the EU’s “obvious” rise in EU trade remedymeasures to address the euro-zone 0 actions against China this year.debt crisis become apparent quickly. 2000 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 Some Chinese companies have suf- Mr. Wang’s statement is the lat- 1H fered considerable losses from suchest by China’s leaders over the past Sources: Eurostat; Bloomberg News (photo) actions, which aren’t beneficial toyear expressing support for mea- economic ties, he said.sures taken to address the euro- Joaquin Almunia, the Europeanzone crisis. Commission vice president in charge The comments gave the euro of competition policy, said Europe’spositive momentum in currency Wang Qishan, exports to China have been risingmarkets during the Asia day, though Chinas vice premier recently due to fast economicthe currency later fell after ratings growth in China, not recent weak-firm Moody’s Investors Service ness in the euro exchange rate.warned of a possible debt down- and whether they will be effective. ter the EU-China meeting. He added sioner for economic and monetary Mr. Chen singled out one partic-grade to Portugal. “We are paying close attention that China will pay attention to affairs, said Europe welcomes ular European trade case for criti- But Chinese Commerce Minister to whether Europe’s debt crisis can “whether Europe’s consensus on China’s support for its measures. He cism, saying he hopes an EU investi-Chen Deming sounded a note of cau- be controlled, and especially what sovereign debt and risk prevention added that Europe’s economic situa- gation into Chinese-made wirelesstion, saying China is closely observ- will happen in the first quarter next can be turned into practical action.” tion is improving even as market modems can be terminated as sooning the actions that Europe is taking year,” Mr. Chen said at a briefing af- Olli Rehn, European commis- conditions remain volatile. as possible.
  5. 5. Wednesday, December 22, 2010 THE WALL STREET JOURNAL. 5 WORLD NEWS: ASIAJapan tweaks visa policyfor medical tourists BOJ to watch impact To cash in on its high-qualitybut expensive medical industry,Japan will ease visa requirementsto encourage wealthy travelers their grown-up children in Tokyo into the present day. Although the cast has yet to be finalized, the film—which has the of rising bond yieldsseeking medical treatment. working title “Tokyo Family”—will BY MEGUMI FUJIKAWA policy on the JGB yield curve. side risks to the economy are still The government will loosen be directed by veteran filmmaker The BOJ’s policy board voted almost balanced. The central bankvisa requirements in January that Yoji Yamada, who once worked TOKYO—The Bank of Japan gov- unanimously at the end of a two-day also kept its assessment of thewould allow patients to receive with Mr. Ozu and whose most ernor pledged to keep a close eye on meeting to leave the unsecured broad economy unchanged in De-renewable, multiple-entry, half- recent film was a remake of Kon the possible impact of recently overnight call loan rate in a cember, saying it “shows signs of ayear visas, lengthening the Ichikawa’s award-winning 1960 climbing bond yields on Japan’s 0.0%-0.1% range, as it is still exam- moderate recovery, but the recoverycurrent single-entry visa by about feature “Ototo.” Production is due fragile economic recovery. ining the impact of its previous seems to be pausing.”three months, according to a to start in the spring, with release Gov. Masaaki Shirakawa spoke measures. The Nikkei Stock Average fin-statement. The program would scheduled for early 2012, the Tuesday after the bank’s policy “The bank will continue to care- ished the day 1.5% higher atmake Japan a more competitive company said. board decided to keep its super-easy fully examine the outlook for eco- 10370.53—posting the sharpest one-destination for ailing patients, It is difficult to see how even monetary policy unchanged, follow- nomic activity and prices, and take day percentage gain for the indexwho have been turned off by the someone like Mr. Yamada can ing its recent moves designed to policy action in an appropriate man- since Dec.’s strict improve on a help stimulate lending and reduce ner,” the BOJ said in a statement re- Meanwhile, Tuesday’s widely ex-rules in favor of film that is deflationary pressures. leased with the rate decision. pected decision came partly as theneighbors like considered “Changes in long-term yields To forestall downside risks to foreign-exchange market, a statedSouth Korea great by film could affect economic, price, as well the economy, the BOJ in early Octo- area of concern, has been relativelyand Singapore buffs. The as financial conditions by increasing ber introduced monetary easing that stable with the dollar now aroundthat have fewer decision to companies’ and households’ fund- included a new five trillion yen 83.65 yen, rising from a low of 80.21visa constraints. update the story raising costs and weighing on prof- ($59.71 billion) asset-buying pro- yen on Nov. 1. The program may offer some its of financial firms, which have gram, as well as a rate cut to the “There remain various uncertain-is one of the hint of what to large holdings in government near-zero range, from 0.1% previ- ties over the prospects of the U.S.Democratic expect. bonds,” Mr. Shirakawa said at a ously. economy, but compared with a pe-Party of Japan’s growth In the early 1950s Japan was news conference. However, analysts are skeptical riod around the summer when astrategies. just beginning its dizzying rise to The BOJ chief said he believes whether increases in Japanese sense of pessimism over the U.S. The new visa will also allow prosperity, and Mr. Ozu’s gentle that recent rises in Japanese yields yields alone will prompt any imme- economy was strengthening, peoplefamily and nonfamily to but heartbreak-ing depiction of largely reflect similar moves in U.S. diate action by the central bank. are now becoming a bit more opti-accompany the patients. people too preoccupied with their Treasurys on the back of new opti- Even considering the recent JGB mistic,” Mr. Shirakawa said. —Yoree Koh own lives to look after aging mism over the U.S. economy. yield rises, the BOJ is unlikely to “And in reflection of that, inves- parents showed how traditional The yield on two-year Japanese take additional easing steps since tors’ risk aversion has...probablyApple Magic: Softbank’s Son family ties were transformed by government bonds jumped to as the recent yield moves “aren’t exert- been weakening,” easing demand forvoted 2010 best leader; the country’s headlong rush into high as 0.235% in mid-December, ing downward pressure on the econ- the Japanese currency as a haven,Jobs chosen as fourth the future. Fast-forward nearly 60 compared with around 0.1% in early omy,” said Kiichi Murashima, an he added. Masayoshi Son, the founder of years and Japan is a very different October, when the BOJ introduced a economist at Citigroup Global Mar- —Takashi Nakamichi,Softbank Corp., was chosen as the place. The bursting of the drastic easing package. The two- kets Japan. Takashi Mochizukibest company president this year, economic bubble in the early year bonds are considered most Indeed, the BOJ governor main- and Kazuhiro Shimamuraaccording to a survey released by 1990s caused two “lost” decades sensitive to changes in monetary tains a view that upside and down- contributed to this article.Sanno Institute of Management. of stagnant growth and Mr. Son received 23% of the deflation—a turbulent period thattotal votes cast by more than 400 has also cast doubt on the basiccorporate executives, earning him assumptions of the previous era.the top spot. Mr. Son jumped from Rising unemployment, lowerthird place to dethrone Fast job security, stagnant incomes andRetailing Co. Chairman and a lack of new, stable jobs forPresident Tadashi Yanai. Survey graduates have weakened therespondents admired Mr. Son for foundations of Japanese societyhis business savvy as Softbank, upon which much of the country’sJapan’s third-largest mobile postwar growth was built. It willcarrier by subscriptions, racked be interesting to see if the elderlyup subscriptions through sales of couple encounters this new JapanApple Inc.’s iPhone and iPad. in “Tokyo Family.” The fanfare for the Apple toys If the pair come up against thedidn’t go unnoticed by survey same neglect and indifferencerespondents. Apple’s Steve Jobs from their offspring in “Tokyowas voted the fourth best leader Family,” they can always cut theirin 2010, becoming the first from losses and hop on a bullet train,an overseas company to break the back to their picturesque seasidetop 10. —Yoree Koh home in a little over four hours. In Mr. Ozu’s film, the journeyShochiku to remake takes the best part of two days.‘Tokyo Story’ film classic —Andrew Joyce Japanese film producerShochiku Co., said it plans to Keep up on Japan minute byremake Yasujiro Ozu’s 1953 classic minute with The Wall Street“Tokyo Story” by bringing the tale Journal’s Japan Real Time atof an elderly couple’s trip to see Shochiku / The Kobal Collection/Agence France-PresseThe 1953 classic ‘Tokyo Story’ is being remade and updated.