Japan's September IP to confirm weak trend

Japan's industrial production has been volatile over the last six months (-0.8% mom in March, +1.2% mom in April, -2.1% mom in May, +1.1% mom in June, -0.8% mom in July and -1.2% mom in August), probably due to the unstable export environment, especially for exports to emerging economies including China. 

"If September production is as weak as anticipateD, it will be the third consecutive month of negative growth, confirming its weakness as a trend. Industrial production for  September to fall by 0.5% mom, after a decline of 1.2% mom (-0.4% yoy) in August", estimates Societe Generale. 

Once the September production figure confirms that the production trend is weak, the BoJ is expected to implement additional QQE measures at the 30 October meeting, added SocGen. At the same time, the BoJ will revise down its assessment on GDP and inflation in its semi-annual report.