Ja­pan out­put up on Asia de­mand

The Pak Banker - - I Nternational -

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

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