Tribble Agency
Tribble Agency


Japan's exports slam on the brakes

Scrambles against Russian planes fell 43 percent from a year earlier to 51 times in July-September, helping bring down the number of Japan's overall scrambles in the three-month period by 12 percent to 170.

Perhaps symbolically, given the breakthrough in negotiations for the Trans-Pacific Partnership (TPP) this month, exports to the USA were up 10.4%, mainly due to increased vehicle sales. The Shanghai benchmark fell 3.1 percent to 3,320.68. Many analysts believe that the weakness would force the Bank of Japan policy makers to introduce further easing into the economy to revitalize growth. The actual figures are significantly worse than the 3.8% hike that analysts had been expecting in the Japanese export sector. Although it was much lower than the 962.0 billion yen trade deficit a year ago, it missed the consensus estimate of the 84.4 billion yen trade surplus.

Toyota gained 2.00 per cent to Y7,467, advancing in line with the rest of the sector despite news in the last hour of trade that it was recalling more than six million vehicles worldwide over a power window glitch that posed a fire risk.

Exports to China fell 3.5 percent from the year before, to 1.11 trillion yen ($9.2 billion). American Express reports quarterly financial results after the market closes.

CURRENCIES: The euro was flat at $1.1353 while the dollar rose 0.2 percent to 120.03 yen.

Japan exports stagnated in September as China's economy slowed, raising speculation of recession and a central bank move to boost growth when it meets next month.

India's Sensex was down 0.2 percent, reversing early gains in the wake of the Chinese stock-market selloff.

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.

ENERGY: Benchmark USA crude fell 76 cents to $45.53 a barrel in electronic trading on the New York Mercantile Exchange.

THE QUOTE: "Japan's trade data suggest that exports recovery is at best meek, adding to the sense that the Bank of Japan will have to ramp up stimulus sooner rather than later", Mizuho Bank said in a market report. Market bellwether Samsung Electronics retreated 0.16 percent and chip giant SK hynix sank 3.92 percent. That was the first decline in seven months.

The Taiwan Weighted lost half a percent.

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