the u.s. president shifts strategy towards a leaner, cheaper military. barack obama has outlined a new u.s. defense strategy that will refocus on the asia pacific. the president cut the military budget as part of a comprehensive overhaul of the nation's finances. the u.s. will strengthen its

presence in asia in the face of cuts to other regions. military leaders say they want to counter the increasing strength of china. obama made the announcement in the first news conference at the pentagon by a u.s. president. the strategy took into account the end of the war in iraq and winding down of the one in afghanistan. pentagon leaders crafted the strategy in line with defense cuts of $450 billion in the next decade. obama says the u.s. will be able to ensure its security with a smaller ground force. >> our military will be leaner, but the world must know the united states is going to maintain our military superiority with armed forces that are agile, flexible, and ready for the full range of contingencies and threats. >> defense secretary leon panetta made it clear the military will no longer be large

enough for large scale ground campaigns. still, he noted that american soldiers could win a conflict on the korean peninsula, and counter the iranian threat in the straight of who are muz. the u.s. will help allies defend themselves through diplomacy and military assistance. north korea says new leadership will promote nuclear development under military led rule. the statement was issued by the north committee for peaceful reunion i have indication of the fatherland on thursday. the statement refers to the south korean president's new years speech. he said if north korea halts nuclear activities, the south will provide it with guaranteed safety and economic assistance through resumption of the six party talks on the north's nuclear program. the north's statement says nuclear deterrence is a revolutionary inheritance, and that it is a foolish

miscalculation to think the deterrence can be traded for some form of aid. it said as long as hostile moves tirn, they will try to safeguard dignity and autonomy. the united nations has launched an investigation into banned weapons activities by north korea. investigators are checking on reports that pyongyang exported to syria substances they believe are related to chemical weapons. a series of u.n. resolutions banned north korea from exporting arms. u.n. sources say greek government officials found the substances in 2009 in a cargo ship that docked at a gr port. they say investigators determined north korea was attempting to export the materials to syria. the greek government seized the items then reported to the united nations. u.n. sources say they suspect

north korea violated u.n. resolutions. north korea and syria are accused of having cooperated in nuclear programs and missile development. our reporter jun yotsumoto spoke to a korean peninsula expert to get some perspective on this story. narushige michushita is an associate professor from the national graduate institute for policy studies here in tokyo. >> reporter: north korea reportedly exported substances believed to be related to chemical weapons. can you give us the background? >> north korea and syria have been cooperating on the development of weapons of mass destruction. north korea has helped construct a nuclear reactor in syria. however, the secret reactor was destroyed by a military strike by israel in 2007. the revelation that north korea attempted to export chemical weapons to syria in 2009 suggests that the two countries are still cooperating but have shifted their focus away from nuclear to chemical weapons. from this, syria has benefited

technologically and north korea has acquired hard currency. >> north korea is trying to promote nuclear development. we suspect that it exports dangerous substances. but what do we know about north korea's ability to produce chemical weapons? >> north korea has strengthened its chemical warfare capabilities since the 1990s largely to offset its disadvantage in conventional military balance. it has up to 5,000 tons of chemical agents. chemical weapons are one of the most important deterrents for north korea. if used against south korea with long-range artillery shells, a large number of casualties would result. we don't know whether north korea's nuclear weapons are operational today, but we know its chemical weapons are. >> north korea has a new leader,

kim jong-un. do you think the recent change of leadership will affect relations between the country and syria? >> north korea and syria have two things in common. both of their leaders have inherited power from their fathers and both countries are isolated. so their cooperation is likely to continue in the years to come. >> our reporter speaking there. u.s. jobs data is coming out later today. let's see how the stock markets are doing. ai, good morning. >> good morning. european stocks mostly lower due to persistent debt concerns, but u.s. stocks regained some ground and a mix as investors gear up for u.s. unemployment data. let's see how the tokyo stocks are kicking off. for that, we go to ramin mellegard at the tokyo stock

exchange. a lot of focus on jobs numbers out of the u.s. >> definitely a lot of focus. going by the private sector jobs numbers compiled by adp and weekly jobless claims numbers that came out better than market consensus, the scene looks to be set up for a positive december jobs payroll numbers due out later today in the u.s. let's look at the opening levels this friday morning in tokyo. the nikkei and topix are marginally lower. they may trade ahead of u.s. jobs data i mentioned, we will focus on energy related stocks following rising tension in oil markets and possible embargo on iranian oil shipments, which is effecting market sentiment. japan is under pressure to go along with u.s. sanctions, and the eu also is going to be deciding that later this month. so that puts a little challenge for japanese companies which are trying to find newer sources of

energy, such as liquefied natural gas and shale oil and gas. so we're going to focus on mitsubishi, some trading companies in japan, and others among the sectors, but also let's not forget the banking sector as continued issues regarding eurozone debt problems continue to hangover markets there, and also authorities are trying to grapple with bank capitalization problems and banks' exposure to levels of high debt. we're seeing bond yields still high in early 2012. ai? >> speaking of which, ramin, the euro hit an 11 year low against the yen. how are the currencies trading? >> that's another major focus. we have been following that a long time. euro yen, 98.75-80.

it hit fresh lows in new york trading time. it backed off a little from that. 98.77-78, well below that 100 euro yen level. dollar holding relatively steady there, but ai, as we were talking, markets may hold steady ahead of unemployment numbers in the u.s., but let's not forget also, there's an overall fear hanging over markets there about possible down grades of eurozone countries and that may trump some of the economic data due out early january. for now, the nikkei and topix down a little. japanese stores got off to a good start. sales were strong through wednesday.

these showed an increase. department store operators say sales of new year grab bags, priced between 130 to $260 roughly rose. these bags contain surprises, such as women's clothing and food. looking ahead, the operators of not so optimistic. they say the continued strong yen and uncertain outlook for the economy will work against consumer spending. personal consumption is a key to forecasting economic trends in japan. consumer spending plunged last year after the march 11 disaster, but it has been recovering since. today we talk about a new shift in spending habits among japanese people. our guest is vice president of the think tank, sophia bank. you said that the way japanese people use money has changsd in a major way.

what exactly do you mean by that? >> the key was to the trend i am referring to are social and sympathy. what i mean is that you choose product that allow you to contribute to society, that let you feel sympathy with the community as a whole. sympathy is a recent phenomenon that spread after the march 11 earthquake and tsunami. so people are making efforts to buy items from effected areas to help them. i think the feeling of sympathy has become a -- possible consumption in japan. >> would you say since the disaster people are more aware of where their money is going? >> yes, exactly. and the movement has spread from

individuals to companies. i think it is great, great news. for example, companies announce it would donate 13 cents for the reconstruction of tow hoku. that will add up to $180 million in donation for tohoku. you can see how this feeling of sympathy has also changed the people's approach to investing money. after the disaster, many people in japan are investing in farms that also pay something to help fishermen and shop owners get back on their feet. when you make investments, what is your first priority? i think usually it is profit. now people put sympathy with the disaster victims ahead of their

own profit. >> so the changing attitudes towards consumption and towards investment, do you think that this reflects a fundamental change and perhaps japanese people's values? >> i think the sympathy and consumption and investment can be seen not only in japan but also in many developed countries, going through. i guess people are becoming more aware that many of the programs today stem from conventional, self centered thinking. as you know, sympathy does not exist as moderator. in many countries, more than half the gdp comes from personal

consumption. the leading thing in consumption could be sympathy. it could overturn conventional economics and change whole society. it could be a new problem to help solve global issues. >> thank you so much for your insights. let's see where the markets are trading this hour. >> that's the latest in business.

back to katherine. asia is a marketer's dream, millions of consumers with money to spend. some cultures like anime are popular. now talent agencies create pop groups with a style that's straight from tokyo. nhk world's mark ho files this report from singapore. ♪ >> reporter: japanese all-girl pop phenomenon akb-48 plays a concert in singapore. japanese groups like this are increasingly drawn to the potentially lucrative asian market. last year, akb-48's first official overseas sister group was formed in the indonesian capital jakarta, dubbed jkt-48. they show how far the influence is spreading.

>> reporter: sea-a is another group being promoted right now with four members from singapore and malaysia. their name comes from the initials of southeast asia, plus animae. >> reporter: the group is the invention of a major japanese talent agency. it plans to turn them into pan-asian superstars. the agency set its sights on singapore as a gateway to asia. the city state is located in the middle of the region. new trends spread from here to neighboring malaysia and

indonesia. so-called otaku has already taken root, so the promoter thought the group's animae and costly style would be a winner. >> yay! >> i used to watch like videos in the cafes and akihabara and i'm always very amazed and inspired. i just feel like, you know, i want to do this, too. >> reporter: the promoter wants fans to follow these ordinary girls on their journey to stardom. japanese agents typically use that strategy to build a loyal fan base. >> translator: in japan, it's important for idols to share their path to stardom with their fans. this concept is new to overseas audiences. i'm sure it will work here as well.

>> reporter: one year after they were first recruited, the group's debut has come. their first live performance in singapore. >> sea-a! yay! ♪ >> reporter: the 3,000 capacity venue is packed out. some people are forced to stand. the performance is a big success, a potential first step towards creating a new asian idol group. >> translator: our greatest challenge is how to appeal to foreign audiences whose culture, nationality and language are different from ours while conveying to them a taste of japanese culture. i think they did a good job. i was moved. but i know this is only the beginning. >> reporter: asia's music market is growing fast and competition

is intense. the challenge for japanese-style idols on their road to stardom has only just begun. mark ho, nhk world, singapore. time to check on some of the stories we've gathered from broadcasters around asia. we begin with this item from rtm in malaysia. the prime ministers of malaysia and singapore have agreed to enhance economic cooperation, connectivity and cross-border exchanges. razak and lee hsien loong issued a joint statement after their meeting in malaysia. they say a joint ministerial committee will be formed to promote industrial cooperation in the iskandar malaysia development region. the leaders also reviewed progress on last year's agreement to build a monorail between southern malaysia's johor state and singapore. a breeding center in iran has saved the persian zebra from the verge of extinction.

the center was established in yazd province in 1997 with four of these horse-like animals. the number has now risen to 40. originally native to the middle east and parts of south asia, they are now restricted to just two protected areas of iran. the color changes depending on the season. they are reddish brown during the summer and turn yellowish brown in the winter. thai customs officials intercepted four tiger skins and bones smuggled into the country, and were apparently bound for china. the contraband goods are believed to have medicinal qualities. they were found in parcels. customs official says the tiger skins have an estimated market value of $16,000. the customs department also showed the media other smug he willed items worth about a

million dollars. thailand's industry minister says about 150 flood hit factories in seven industrial parks resumed operations. he said about 80% of the suspended plants would restart manufacturing in the first quarter. the government helped the factories with financial aid, investment incentives and tax breaks. the minister added a fund worth $1.6 billion may be set up to guarantee insurance coverage for manufacturing plants. despite snowy conditions in northern japan, most of the country is enjoying dry conditions. let's get the bigger weather picture. welcome to your weather update. let's look at what's happening in east asia. the western side of japan is dealing with heavy snow. although the brunt is over, we anticipate another 20 to 30

centimeters of snow by saturday morning here. and strong winds are also prevailing along the coast. but meanwhile, the pacific side should stay largely dry throughout today. a large high pressure system is in place over china and the korean peninsula bringing dry weather. showers in the southeastern corner of china is gradually tapering off. looks like northern taiwan and southern islands of japan stay wet all day today. towards the philippines, rain could become heavy at times in the southern and central portions of the country, and these areas have been dealing with very heavy rain over the past several days, so we are concerned about additional risks of flooding and land slides. temperature wise, we're expecting 9 degrees in tokyo, 0 in seoul. cooler in taipei with 13 degrees. 15 expected in hong kong. heating to 32 in bangkok, with a

chance of thundershowers. heading to the americas, it is staying calm and dry from coast to coast. temperatures are on the warmer side still, but there are a few things to talk about. this low pressure system has been dumping heavy snow in ontario. we are expecting about 15 centimeters of snow. snow will spread to southern quebec and parts of new england in the next 24 hours. across the west, things are getting calmer in bc and the pacific northwest. but you'll notice another round of stormy weather is on the way to impact the same area friday. down towards the south, east of mexico, and southern texas, looking at thunderstorms rumbling, light showers also spread to the western gulf coast in the next 24 hours. temperature wise, it is cooling down to a seasonal level in seattle with 6 degrees, and 7 in vancouver, but the rest of the

areas are still experiencing very warm temperatures. 9 degrees in chicago, which is 10 degrees higher than average, and 7 in toronto, and 9 degrees in new york. finally, let's go to europe. a couple of storms that brought gusty, wet conditions to northern europe are targeting southern areas. it is going to be stormy in the balkan peninsula friday. lots of heavy rain, snow, strong winds expected. things are calmer in europe. alpine region will be wet and windy friday. gusts about 100 kilometers an hour are possible until friday afternoon. across the british isles, it is dry, but another round of wet weather is expected to impact the northern uk starting friday afternoon. we expect 9 degrees in london, the same for paris. warmer than average in miscowith 2, and 4 in kiev.

i leave you now with the extended forecast. u.s. president barack obama outlined a new defense strategy that will refocus on the asia pacific. the president cut the military budget as part of a comprehensive overhaul of the nation's finances. the u.s. will strengthen its presence in asia in the face of cuts to other regions. military leaders say they want to counter the increasing strength of china. obama made the announcement in the first news conference at the

pentagon by a u.s. president. the strategy took into account the end of the war in iraq and the winding down of afghanistan. it is in line with cuts of $4 billion in the next decade. obama says the u.s. will be able to ensure its security with a smaller ground force. >> our military will be leaner, but the world must know the united states is going to maintain our military superiority with armed forces that are agile, flexible, and ready for the full range of contingencies and threats. >> defense secretary leon panetta made it clear the military will no longer be large enough to conduct large scale ground campaigns. still, he noted that american soldiers could win a conflict on the korean peninsula and counter the iranian threat in the strait of hormuz.

they will use diplomacy and military assistance. north korea says new leadership under king jong unwill promote nuclear development under military led rule. the statement was issued by the committee for the peaceful reunion i have indication of the fatherland thursday. the statement refers to the south korean president's new years speech. he said if north korea halts its nuclear activities, the south will provide it with guaranteed safety and economic assistance through resumption of six party talks on the north's nuclear program. the north's statement says nuclear deterrents is a revolutionary inheritance, and that it is a foolish miscalculation to think deterrents can be traded for some form of aid. it says as long as hostile moves continue, the north will further strengthen its status as a nuclear armed country to safeguard its dignity and

autonomy. that wraps up this edition of "newsline." i'm catherine kobayashi in tokyo. tokyo. thanks for joining us. -- captions by vitac -- www.vitac.com