hello there and welcome to "newsline." i'm yuko aotani in tokyo. first the headlines at this hour. investors have pushed the nikkei to its highest level in seven years and the yen has plunged against the dollar. u.s. president barack obama is trying to overcome a low approval rating and boost his party's chances in the final sprint before election day. and setting up a business abroad can be a challenge.
but south korea has introduced a new visa to help foreigners cut through the red tape and get ahead. policymakers at the bank of japan are expanding their monetary easing policy. they're going to buy even more government bonds than they are now. and stock investors are on a buying spree. tokyo's benchmark index hit 17,000 this morning. that's the highest level in seven years. the nikkei ended the morning session at 17,071. that's 4% higher than the close on friday. the market was shut on monday for a public holiday. ai uchida joins us from the business desk with the details. what's happening now? >> two things surprised investors by the b.o.j.'s moves, the timing and the size. the people at the b.o.j. hadn't expanded their stimulus since they launched in it in april of las year. the monetary base will grow at 80 trillion yen. that is roughly $730 billion. this is giving investors a reason to buy.
let's go to ramin mellegard now. he has all the updates for us. what can you tell us? >> as you and yuko pointed out the nikkei breaking 17,000 level, so quite a big focus there. let's have a look at how the morning session wrapped up for the nikkei and the topix. 17,071 up 4%. that is over 600 points and the broader topix up 3.6%. so following the b.o.j.'s stimulus package and the news that the government pension investment fund will increase the allocation of japanese entities, the investors piled into stocks. blue chip exporters were among the top performers. the dollar surged against the yen hitting a seven-year high. sony, which actually came out with earnings on friday, posting losses but the losses were less
than many had expected so we did see that surge higher. up over 11%. and sony will take cost-cutting measures. panasonic came out with earnings on friday. it will also higher after posting a profit and raising its full-year forecast up 7%. as the nikkei surge as did the financial sector stocks as well. oil prices have been plummeting as we have been reporting there. so firms such as inpex was down 1.25%. the dollar is a big focus. having a look at it right now, slightly lower topping out at the 114 yen levels. analysts say the next big thing for the dollar is the u.s. jobs numbers on friday. very quick look at asian indexes. a muted reaction compared to the gains in the anyay.
analysts suggesting that manufacturing data out of china on monday put a dampener in. there. >> thanks for that update. ramin mellegard. there. japan's finance minister is considered about the downside of the falling yen. taro aso thinks the government may need to step in. >> translator: the weaker yen may be good for export businesses. on the other hand it will drive up prices for imported goods. so we have to ease the impact of that. >> the finance minister says the extra stimulus is mainly intended to drag the economy out of deflation. he says the weakening of the yen is a secondary effect.
aso says japan has explained the reason for its finance policy to leaders in other countries. for more insight we spoke with martin schultz, the senior economist at fujitsu research institute. >> we are seeing a very strong market from friday on in japan. the main reason for that is the bank of japan has expanded its monetary policy and shown it is continuing its quantitative easing policy to reinflate the economy. this has driven the japanese yen much weaker. what we have seen so far this year is a strong dollar. now we see the yen quite a bit weaker for the rest of the year because monetary conditions in japan remain much more relaxed than the u.s. where monetary policy is gradually tightening. the weaker yen has always a very strong impact in the japanese stock market. the main reason for that is that the exporters are always driving
valuations in japan. exporters are the engine of growth in japan which is supporting the overall economy. exporters who are starting to invest more in japan. they are increasing their profits but not so much their investments. now companies are becoming more optimistic. they are investing more. we can expect that the weaker yen is having a stronger impact on exporters and incomes in japan which is a strong plus. analysts say the rise in the consumption tax in april and cool summer weather made japanese consumers spend less. they say that caused gross domestic product for the july to september period to grow more slowly than they expected. analysts from ten private search firms estimate gdp rose between 0.2 and 0.7% in real terms.
that translates to annualized growth rate of between 1 and 2.8%. gdp shrank at 1.7% in the april to june quarter. consumer spending accounts for 60% of gdp in japan. prime minister shinzo abe has to decide whether to raise the consumption tax again next year from 8% to 10%. he says he will make his decision after looking at economic data like gdp. finance ministry officials will release preliminary figures on november 17th. countries are fiercely competing to attract entrepreneurs from overseas to boost their economy. south korea started issuing a new start up visa last year to get foreign inventors to settle there. nhk world's kim chan-ju has more. >> reporter: in seoul, foreign entrepreneurs gather together at a party to share information and ideas.
among them is jason lee, a korean-american who applied for and obtained a new visa so he could seek business opportunities in korea. after graduating from a university in korea, lee capitalized in his expertise in information technology to start his own business, operating a website for wedding planning. however, since he only had a tourist visa at the time he had to leave south korea regularly to renew his visa which cost him significant amounts of time and money. >> it was so hard to do my own business in korea. i actually went to japan a lot to maintain my three-months visa. >> reporter: because of difficulties in obtaining a work visa, lee was thinking of going back to the united states and giving up running a business in korea.
but just as he was about to leave, he heard the good news that the government was going to establish a new visa for foreign entrepreneurs. the quickest way to qualify is if you have a patent as well as the two basic requirements of a bachelor's degree and an established company in south korea. computer related patents lee took out as a university student allowed him to apply for the start-up visa immediately. the visa helped him deal with banks smoothly, enabling him to make a success of his business. >> to getting the start up visa means you can do anything what you want in korea just like a korean. >> reporter: jason lee had his intellectual property patents register bud there are other
ways to obtain a start-up visa here without the patent. entrepreneurs without a patent can get the start up visa by completing business training sessions run by the government. this year, 50 business people from 20 countries attended the sessions and learned about domestic laws and presentation skills to help them raise funds in south korea. >> translator: the goal of your presentation is to touch people's hearts. >> we are actually learning a lot of stuff. a lot of things about, for example, the patents, how to actually start a business. incorporation, regulations, all kinds of very useful information, yeah. >> reporter: furthermore, the south korean government provides
int entrepreneurs with $50,000 of initial funding as well as office space. >> translator: we can expect foreign entrepreneurs to bring in various new technologies and create more jobs in our country. >> reporter: major south korean companies such as samsung electronics and the hyundai motor companies suffering deteriorating sales. so foreign entrepreneurs are bringing hopes of innovation, new jobs and a brighter business future. kim chan-ju, nhk world, seoul. >> and that's all for now on business news. i'll leave you with a check on markets.
every morning, investors turn their attention to asia. the tokyo market leads the way and markets around the world follow. >> from the decisions that could change the course of an economy. >> to the companies at the forefront of change. >> up to the minute market reports. >> and analysis by specialists from around the world. >> get all the latest business news and insight every day. here on "newsline." candidates in the u.s. midterm elections are making their final appeals to voters one day before polling stations open. president barack obama's
democratic party is fighting to defend its majority in the senate. 36 of the senate's 100 seats are up for grabs. all 435 seats in the house of representatives are in play. voters in 36 states will choose their next governor. obama made campaign stops to rally support for candidates in connecticut and pennsylvania. >> you've got to grab your friends. you've got to grab your classmates. you've got to grab your co-workers. you've got to knock on some doors. you've got to make some phone calls. >> analysts say obama's low approval rating poses a challenge for democratic candidates. obama had a 68% approval rating in his first three days in office six years ago. that was the highest rating since john f. kennedy was in power. but obama's popularity has fallen steadily. as he struggled to revive the economy. he was re-elected in 2012 but his rating has been under 45% since last october.
and it dropped to 42% this september. the republicans are expected to strengthen their position in the house. the latest polls suggest they might also take the senate. turkish coast guard officers are searching for survivors after a fishing boat sank off the coast of istanbul. the boat was carrying dozens of migrants. at least 22 people were killed. the accident occurred in the bosphorus strait. coast guard officials say they believe there were more than 40 people on board. that's over five times the vessel's capacity. the people on board are believed to be mostly from afghanistan. migrants have been stopping temporarily in turkey to earn money before heading to other parts of europe. officials with the organization for security and cooperation in europe have been trying to keep their eye on the situation in eastern ukraine. they've deployed surveillance drones to monitor the cease fire between government forces and pro-russian separatists.
now they say one of the aircraft has come under attack. officials say the unmanned drone was flying at an altitude of about 1500 meters when it came under fire by a number of anti- aircraft rounds. it wasn't hit and landed safely about 45 minutes later. the u.s. envoy to the osce said given the location of the attack it was likely carried out by russian-backed forces. the attack occurred on the same day that separatists in eastern ukraine held an election to choose new leaders. officials in kiev and some western nations have denounced the vote. they said it will worsen the conflict. volcano experts in japan have been studying the disaster control measures drafted by the country's nuclear regulators and they're questioning whether the
science is sound. the nuclear regulation authority has urged plant operators to take measures if there are signs of a major eruption that would threaten a nuclear power plant. experts with the volcanological society of japan say forecasting eruptions isn't that easy. >> translator: we think the rules have to take into account the unique challenges and limitations of protecting volcanic eruptions. researchers and government officials need to hold some open discussions on the issue. >> in september, the regulators approved safety measures for a nuclear plant in kagoshima prefecture in southwestern japan, but some experts question whether the plant operators are capable of predicting eruptions. people in western japan are trying to determine the cause of a very bright light they saw racing across the evening sky on monday. experts say it may have been
what is called a fireball meteor. nhk's robotic camera captured an object emitting a strong green light for about four seconds. another robotic camera in the region showed a faint orange light shooting across the sky at around 6:00 p.m. weather officials say they received about ten reports of sightings. and they say people also witnessed the flash of light in hiroshima and matsuyama. >> translator: the phenomenon was probably a very bright meteor called a fireball. it's very rare that a fireball was observed so clearly during the even time. >> he says fragments from the fireball most likely ended up in the sea.i time. >> he says fragments from the fireball most likely ended up in the sen time. >> he says fragments from the fireball most likely ended up in the seg time. >> he says fragments from the fireball most likely ended up in the sea. as more japanese mothers enter the work force, there's a need for more day-care centers.
but the local governments speeding up the building process are hitting a road block as many locals oppose the plans. >> reporter: this ward in tokyo has one of the longest waiting lists for day care in japan. over the next five years, the ward plans to build 29 new day-care centers. last year, it appointed a special team to speed up the process. they hired a real estate expert to get some know-how. the ward is looking for possible sites for new centers. on this day, they met local land owners and asked for more information about new locations. while day-care centers are going up in some neighborhoods, a number of locals are putting up resistance.
>> translator: it won't be a comfortable residential neighborhood anymore. i bought this house because it's quiet here. >> reporter: the department hears similar concerns almost every day. some locals are also concerned about parents' bad manners and the traffic congestion they cause. >> translator: we're trying to convince the residents by saying we will operate this facility with respect for the community. >> reporter: in other parts of the country, locals have gone to court demanding compensation for noise by day cares. in some cases locals are filing lawsuits demanding preventive measures. in response, risk management companies are becoming more active. they specialize in mediating problems related to day-care centers.
on this day, the director of a day-care center in tokyo visits a risk management company. she says a local turned up at the center ranting about children's noise. some specialists say the problem is heightened by the declining birth rate and aging population. so many people aren't used to seeing children in their neighborhoods. >> translator: as the number of children declines, many residents see day care as irrelevant to them. something that simply disturbs their peace. >> reporter: some day-care centers try to prevent conflict by making personal contact with community members. this facility in osaka used to receive complaints from locals about excessive noise. so it began inviting neighbors to its events. here, local elderly people have been invited to sports day.
grandma's here. we are all nanas. >> reporter: the day-care center says that since it began to build relationships in the community, there have been fewer noise complaints. >> translator: we can prevent trouble and help local people to understand the situation by inviting them to see these wonderful children and watch them grow up. >> reporter: this people-to-people strategy might be what it takes to turn things around. instead of seeing day cares as a nuisance, locals might consider them a benefit. it's a beautiful sunny day in tokyo but there is a typhoon moving toward japan.
for details here is our meteorologist, robert speta. >> this is typhoon nuri. it is starting to weaken. but this is one of those storm systems you don't want to be near the center of circulation. and good news is no one is really near the center of circulation unless you are on a boat and lost ahead of it. it is out to sea and winds upwards of 250 kilometers per hour. you see the center of circulation right here. but see all the cloud cover pulling off to the northeast? our storm system is going to follow in right behind that, pulling to the northeast missing much of mainland japan. that is the good news. the bad news about 24,000 people live out here south of tokyo and you are going to be taking a direct impact from this with a risk of damaging winds and flooding and landslides could come out of this as well the outer islands. do think at this time people are make preparations. and i wouldn't be surprised if
there aren't evacuations issued with this. one thing that is keeping our storm farther off here to the east, nuri, that is, is that high pressure behind it which is bringing blustery conditions in hokkaido and honshu, as winds up to 140 kilometers per hour have been reported. and that same high is also making for some decent weather through korea and china. good news out there. some sunny skies and temperatures climbing up into the high teens in seoul and shanghai. in the south, rain showers dominating the forecast for the tropics. really just the easterlies here. nothing organized but manila up to 32 on tuesday. let's move over to the southern hemisphere now. i want to talk about a few areas out here into south america, specifically over through peru and down to argentina. two separate weather systems
have been making for some rather rough conditions. this is first out of peru where we have been seeing the heavy rainfall. caused some severe flooding in some areas out here on sunday. see the students sitting up on their chairs. trying to get out of the water. actually when they left school they had to be carried out. many roads were blocked. several homes you see completely damaged due to mudslides which cut through rural areas. and buenos aires on monday many streets were inundated prompting evacuations. 122 millimeters fell in the past two days exceeding the monthly rainfall for that area. residents evacuated. the good news is that we are still going to be seeing improving conditions. unfortunately, scattered showers off to the north but with this weather system to the south, it is moving away. the high pressure is going to
ridge in behind that and bring some favorable weather. let's talk about hurricane vance intra -- into central america, mexico specifically. that is pulling off to the northeast. good news with this it is a category 2 hurricane and expected to weaken. a threat of flooding for coastal areas. and in europe, the topic is this cold front. right there. you can see it pushing through parts of france, into spain. severe weather potential in this. even red alerts in the western portions of italy. you could see large hail, damaging winds and a threat of tornados coming out of this. good news for those of you in eastern europe, high pressure is dominating. temperatures staying on the cool side. moscow just with a high of 3. here's your extended forecast.
celebrated culture day on monday. in the city of nara people gathered to watch one of the country's oldest performance arts. ♪ musicians and dancers put on a performance of gagaku, an art form associated with japan's imperial court. the setting was -- a 1200-year-old shrine with unesco world heritage status. ♪ a quartet of dancers in battle armor acted out a piece called tiheraku. the piece is performed only on special occasions. and that's all for this edition of "newsline." i'm yuko aotani in tokyo. we will be back with more news at the top of the hour.