Important Tier 1 data from Japan was released this morning, with a surprising bounce in monthly industrial production for October – up 1.8% on expectations of continued falls. Year on year, the trend is still down, although this has been given a small boost and will probably stave off a technical recession in the worlds 3rd largest economy:
Other data included Consumer Price Index (CPI) figures for October, both nationally and in Tokyo with the former falling 0.4% year on year – the Japanese deflation continues:
This has given a small boost to the Japanese equity indices, with the Nikkei 225 and TOPIX both up slightly in morning trade, whereas the Yen has come back slightly on the release, down just below the 82.10 level – its been on a tear recently:
Bloomberg is pointing towards Shinzo Abe – probably the next Prime Minister – goal of “unlimited monetary easing”, putting more pressure on the Bank of Japan and get inflation running at 2% per annum:
Today’s data show the Bank of Japan (8301)’s 1 percent inflation goal remains distant, and will keep pressure on Governor Masaaki Shirakawa to add stimulus at next month’s policy meeting. Abe, head of the Liberal Democratic Party that polls suggest will win the election, called again yesterday for unlimited easing and a price-gains target of 2 percent.