Tribble Agency
Tribble Agency


Japan shares lead Asia markets higher on stimulus hopes

Japan's annual export growth slowed to a crawl in September as slumping sales in China shrank the volume of shipments, raising fears that weak overseas demand may have pushed the economy into recession. The figure soared 77 per cent from the same period a year earlier and as already more than the 2-trillion-yen record buying spree for the previous year, the report said. With BoJ governor Kuroda indicating that more stimulus will not be forthcoming the market has taken a contrarian stance betting that sooner rather than later the BoJ's hand will be forced into more accommodative monetary policy prior to the implementation of proposed tax increases in 2017.

Japan's official data showed shipments to China slipped 3.5 percent in September, Japanese data showed, while those to other Asian countries were also down.

Stocks in South Korea rose, with the Kospi index in Seoul up 0.4 per cent. New Zealand stocks rose 0.4 per cent, extending their longest run of gains since November past year.

"Given this data, the economy probably contracted about an annualised 0.5% in July-September".

"We call on Japan to cease all interfering actions targeting China and make constructive efforts to safeguard China-Japan relations and regional peace and stability", she added. This is the slowest pace in exports expansion since August 2014, whilst this past August Japan's exports rose 3.1%. The European Central Bank meets tomorrow.

Tokyo shares lost 0.57 percent in early trade Monday, despite a positive lead from Wall Street as investors await trading cues from a string of fresh economic data from China later in the day. This suggests net exports weighed on third-quarter GDP, Barclays Securities Japan economist Yuichiro Nagai said. Lennar gained $1.43, or 2.8 per cent, to $51.86 and D.R. Horton rose 76 cents, or 2.5 per cent, to $31.13. Zoomlion fell 4.4 percent and rival XCMG Construction Machinery Co. tumbled 7.9 percent. The Standard & Poor's 500 index dipped two points, or 0.1 per cent, to 2,030.

"Export growth fell short of expectations in September, and the trade deficit narrowed much less than anticipated", says Marcel Thieliant, Japan analyst at Capital Economics.

Australia's S&P;/ASX 200 Index fell 0.4% in Sydney, a second straight drop.

CURRENCIES: The dollar rose to 119.98 yen from 119.84 yen in the previous session. It has since recovered to C$1.3112. Crude oil imports were down 34 percent, and liquefied natural gas imports 36.6 percent.

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