Japanese and South Korean Industrial Production Fall More Than Forecast

Japanese and South Korean industrial production fell more than economists estimated last month as slowdowns in China and Europe weighed on exports, building the case for more monetary easing.

Japan’s output fell 1.3 percent from July, the biggest decline in three months, a Trade Ministry report showed in Tokyo today. South Korean production slid 0.7 percent, partly on a strike at Hyundai Motor Co.

An increasing risk that Japan’s economy will shrink this quarter and the failure of central bank loosening to dislodge deflation may increase pressure for officials to ease at either of two meetings next month. Today’s data add to China’s weakest industrial production growth in more than two years in highlighting the failure of policy support to reverse a slowdown across Asia.

via Bloomberg

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