Japan's industrial output rises unexpectedly in September

Japan's industrial production unexpectedly rose in September by 1.0 percent, owing to swift production of both chemical and electronics devices, the government said in a report on Thursday.

The Ministry of Economy, Trade and Industry said in a preliminary report that the index of output at factories and mines stood at 97.3 against the base of 100 in 2010, with the 1 percent increase being far higher than median economists' forecast of a 0.6 percent decline.

While much of the latest macroeconomic data has pointed to Japan slipping back into a technical recession, the output data will likely impact the decision making of the central bank here, which many believe is close to unveiling fresh measures to shore up the economy and ensure it hits its already delayed 2.0 percent inflation target.

The ministry's data also showed that while output of electronic parts, devices and chemicals helped elevate the factory output index from its 1.2 percent drop in August, the index of industrial shipments also advanced in the recording period, rising 1.3 percent to 96.7, although inventories were down 0.4 percent at 113.5, the data showed.

While Japan's economy contracted in the second quarter due to a slowdown in other Asian economies, most economists agree that it's still a question of when not if the Bank of Japan (BOJ) will bolster its monetary easing policy.

"The positive production data requires no change for the BOJ's optimistic view for the economy. Still, this doesn't change the fact that uncertainties are still high for the outlook of Japan's economy and the BOJ is far from 2 percent inflation target. Additional easing remains a question of when, not if," said Kazuhiko Ogata, an economist at Credit Agricole SA. Enditem