Japanese PPI rose above estimates in.....>

JAPAN DATA: Japanese PPI rose above estimates in October, and was in positive

territory for the tenth consecutive month on an annual basis. 

- Following the release Barclays see the terms of trade as being a key

constituent of the data. Terms of trade "came to -4.9% y/y in October, a deeper

margin of deterioration than in September (-3.7% y/y). Terms of trade have

remained negative y/y since the upturn in import prices in January (Figure 3).

Although export prices have turned around, oil prices have trended upward since

June, which could be a factor weighing on terms of trade going forward."

- "Based on last week's Reuters Tankan survey for November, it appears that some

manufacturers have started to feel the deterioration in terms of trade due to

the weak JPY and higher oil prices. Also, terms of trade among large

non-manufacturers have deteriorated based on the input and output price DIs in

the September BoJ Tankan, suggesting companies are still struggling to raise

prices despite the economic recovery (Figure 4). Although business sentiment

remains favourable, this deterioration in terms of trade warrants attention, in

our view" Barclays write.