Japan output up on Asia demand
TOKYO: Japanese factory output rose for the first time in six months in November and manufacturers expect to boost production in coming months, suggesting that firm demand in Asia will help the economy resume a recovery early next year. But creeping rises in the yen kept policymakers on alert for risks to the export-reliant economy, with the finance minister repeating his warning that the government would take decisive action to stem any sharp yen rises that could hurt growth.
Industrial output rose 1.0 percent in November, matching a median market forecast and marking the first rise in six months, the Ministry of Economy, Trade and Industry said on Tuesday. Manufacturers surveyed by the ministry expect output to rise 3.4pc in Dec and 3.7pc in Jan. The data bodes well for the fragile economy and underscores the Bank of Japan's view that growth will pick up modestly early next year on continued support from exports to emerging Asia, lessening the chance of an imminent policy easing by the central bank.
"The headline figure was in line with expectations, but forecasts for December and January came in quite strong," said Yoshiki Shinke, senior economist at Dai-ichi Life Research Institute. -Reuters