Japan Industrial Production (preliminary for February): 4.1% m/m (expected +5.0%)

We had some
inflation and jobs data from Japan already this morning (its a
holiday nearly everywhere in forexland, but not in Japan):  

Now, the IP data, of
all the data this morning probably the most watched.

Production m/m for February (preliminary reading) +4.1% m/m

  • expected 5.0%, prior
    was -6.8%

Production +1.4% y/y for (February reliminary)

  • expected 2.3%, prior
    was 2.5%

The question was
will there be a bounce from January’s slump on the month? The
outlook published by METI (Japanese
manufacturers see February output +9.0% m/m
) said yes, and the
data today is in that direction indeed. It has undershot that
outlook, which is not unusual, but the background to the IP data was
a softening in earlier indicators for February:  

  • The manufacturing PMI output index was 53.4, down 1.3 points on January
  • Current conditions DI for manufacturers in the Economy Watchers Survey was down 2.9 points from January
  • Exports were up but on slowing momentum 

More (the outlooks):

  • March seen at +0.9% m/m
  • April’s at +5.2%

If you are trading away – there is still some info to come from Japan

  • BOJ Japanese Government Bond buying operation scheduled in the 1-3, 3-5, 5-10 years still left until maturity
  • That’s at 0110GMT

I won’t be around – I’m off for the rest of the looooong weekend! Have a great time everyone!


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