[May 19, 2008]

Kyodo economic news summary -3-+

(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, May 19_(Kyodo) _ ---------- Nissan to begin mass-production of lithium-ion batteries by FY 2009

TOKYO - Nissan Motor Co. said Monday it will start the mass-production of lithium-ion batteries by fiscal 2009 with an initial annual output capacity of 13,000 units as part of its efforts to catch up with rival automakers in developing eco-friendly vehicles such as gasoline-electric hybrid cars.

Automotive Energy Supply Corp., a joint venture set up in April 2007 by Nissan, NEC Corp. and its subsidiary NEC Tokin Corp., will take charge of production at its new production line to be built in Zama, Kanagawa Prefecture.

---------- Dollar remains firm at lower 104 yen level in Tokyo morning

TOKYO - The U.S. dollar remained firm at the lower 104 yen level Monday morning in Tokyo, on views that the recent round of interest rate cuts in the United States may be nearing an end.

At noon, the dollar was quoted at 104.14-19 yen, compared with Friday's 5 p.m. quotes of 104.03-13 yen in New York and 104.23-26 yen in Tokyo.

---------- Microsoft, Yahoo explore alternative business tie-up deal

NEW YORK - U.S. software giant Microsoft Corp. said Sunday that it has offered to major Internet portal Yahoo Inc. an alternative deal for a business tie-up after earlier giving up a bid for full acquisition of Yahoo.

"Microsoft is considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo," the company said in a statement.

---------- 'Consumers Agency' to regulate exaggerated ads

TOKYO - The envisaged "Consumers Agency" will be in charge of regulating exaggerated advertising, as the Japan Fair Trade Commission has agreed to transfer this duty, government sources said Monday.

More than half of some 70 FTC officials involved in the administration of the truth-in-advertising law will be transferred to the new agency, which Prime Minister Yasuo Fukuda aims to establish as an affiliated organ of the Cabinet Office to serve consumers' interests, the sources said.

---------- BOJ likely to hold rates steady with worries over economy

TOKYO - The Bank of Japan began a two-day policy meeting Monday amid widely held expectations that it will leave its key interest rate unchanged as the central bank has urged caution over the prospects for the global economy.

The BOJ's Policy Board is likely to keep the target rate for unsecured overnight call money on hold at 0.5 percent for the 15th month running.

---------- Toyota resumes production at plant in China's quake-hit area

NAGOYA - Toyota Motor Corp. said Monday it has resumed auto production at a factory of its joint venture in Chengdu in the Chinese province of Sichuan after a weeklong suspension due to the devastating May 12 earthquake.

The factory will be operated only in the daytime until Saturday as its employees have been affected by the quake, Toyota officials said. Details of the production operations after Saturday, such as whether nighttime production will be resumed, will be decided by the end of this week.

---------- Tokyo stocks end higher, but gains limited

TOKYO - Tokyo stocks ended higher Monday, led by gains in oil and resources-related shares, but the upside was capped by selling for quick profits and lingering concerns about the health of the U.S. economy.

The 225-issue Nikkei Stock Average gained 50.13 points, or 0.35 percent, from Friday to 14,269.61. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 8.38 points, or 0.60 percent, to 1,404.25.

Copyright ? 2008 Kyodo News International, Inc.

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