* Japan Nov factory output -1.7 pct vs forecast -0.5 pct
* Nov core CPI -0.1 pct, jobless rate eases to 4.1 pct
* Dec manufacturing PMI at 45.0, lowest since April 2009
* Data to keep BOJ under pressure for more stimulus
By Tetsushi Kajimoto and Kaori Kaneko
TOKYO, Dec 28 Japan's factory output fell more
than expected in November after a surprise jump in the previous
month, keeping up pressure on the central bank to deliver
further monetary stimulus as weak global trade weighs on the
The central bank, even after loosening policy in December
for the third time in four months, still faces intensifying
pressure from new premier Shinzo Abe whose government was
installed two days ago.
Industrial output fell 1.7 percent in November, more than
triple the median market forecast for a 0.5 percent decline,
data from the Ministry of Economy, Trade and Industry showed on
Friday. That followed a 1.6 percent gain in October, which was
the first rise in four months.
Manufacturers surveyed by the ministry, however, expect
output to rise 6.7 percent in December and increase 2.4 percent
in January, the data showed, suggesting a modest pick up in
growth early next year.
"It's more important that forward-looking sentiment for the
January-March period is good, as output is expected to rise in
December and January," said Masamichi Adachi, senior economist
at JPMorgan in Tokyo.
"That said, there still is a concern in the Japanese
economy, especially in the country's manufacturing sector, as
the December PMI was really weak."
Japan's economy has slipped into a mild recession, hurt by
weak global demand and slumping sales to China after a
diplomatic row with the country. Analysts expect growth to pick
up early next year, although any recovery will likely be slow
The BOJ delivered further monetary stimulus last week in
response to pressure from Abe, whose party won in a landslide in
a Dec. 16 lower house election, to take bolder action to pull
Japan out of deflation.
The central bank also signalled setting a higher inflation
target in January than the current 1 percent goal, although
market participants doubt it will have the means to achieve it.
Separate data released on Friday showed Japan's core
consumer prices, which exclude volatile fresh food prices, edged
down 0.1 percent in November from a year earlier, in line with
the median market forecast.
Japanese manufacturing activity also put in a bleak
performance in December in the Markit/JMMA Japan Manufacturing
Purchasing Managers Index (PMI), declining at its fastest pace
in more than three years. The PMI was also released on Friday.
Japan's Nikkei 225 stock average climbed to a
21-month high on Friday, however, while the yen hit its
lowest in more than two years, on expectations that the LDP's
determination on monetary easing would finally shake the economy
from its prolonged deflation.