We got some poor industrial production data out of Japan yesterday:
- Japan - February preliminary Industrial production: -3.4% m/m (expected -1.5%)
and
- More on Japan's disappointing February preliminary industrial production data
The Nikkei isn't too fazed ...
Japan's manufacturing sector is starting to recover in upstream areas, including materials, electronic components and machinery, while such downstream businesses as automakers and electronics companies remain in a slump.
Even though the survey for March shows the downtrend continuing, the ministry left its assessment unchanged from the previous month, saying output is "showing signs of increasing at a moderate pace." That is because of a continued recovery, primarily in export items, which started around last summer.
A weak yen has improved the climate for exports, resulting in increased production of materials, parts and machinery.
