Japan industrial production likely dropped m/m in February

Japan will release February industrial production (IP) data on 30 March. According to Standard Chartered IP to have dropped 0.8% m/m on a seasonally adjusted basis; this translates into a minor y/y contraction of 0.1%. IP jumped 3.7% m/m in January, in parallel with strong exports driven by recovering US demand. 

However, exports slowed in February on weaker demand from China and as domestic demand remained subdued. 

"We think the likely drop in inflation in February was temporary, and expect IP growth toimprove in the coming months on higher export growth", says Standard Chartered.