Morning Forex Fundamental: JPY

Morning Forex Fundamental: JPY

'The GDP data confirms that the economy has fallen into a recession' - Tatsushi Shikano, senior economist at Mitsubishi UFJ Morgan Stanley Securities

Japanese industrial production fell in September

Impact: Medium

Japanese industrial output tumbled in September, due to the weak domestic demand and exports, the Ministry of Economy, Trade and Industry said on Tuesday. Nation’s industrial production dropped a seasonally adjusted -4.1% from the same reading in the preceding month. The weak data are putting more pressure on the BoJ to expand its stimulus programme to bolster economic growth, as the world’s third biggest economy is heading for a technical recession.

'Today’s bad economic numbers deliver unpleasant news for Noda,' said Hiroshi Shiraishi, senior economist at BNP Paribas SA in Tokyo, who accurately forecast the GDP figure.

"The GDP data confirms that the economy has fallen into a recession," said Tatsushi Shikano, senior economist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.

The Nikkei 225 Stock Average grew 0.04 per cent, or 3.68 points, to 8,664.73. The broader Topix Index declined 0.02 per cent, or 0.15 points, to 722.41