MNI POLICY: BOJ May Review Export Uptrend After Weak Sep Data

     TOKYO (MNI) - The Bank of Japan may consider reviewing its assessment that

Japanese exports are on an uptrend, as Ministry of Finance trade data released

Thursday showed Japanese exports fell 1.2% on year in September, the first

year-on-year drop in 22 months.

     The trade data also showed global demand for Japanese cars, electronics and

machines dropped on year, prompting BOJ economists to carefully analyze the

background of the drop.

     --It is unlikely the BOJ board will unlikely downgrade its assessment that

exports have been on an increasing trend as early as the October 30-31

policy-setting meeting based on the weak September data, as BOJ officials focus

on quarter-on-quarter data to examine the underlying trend.

     --The next key piece of data is the BOJ's real trade indexes for September

due out at 1400 JST (0500 GMT) Thursday.

     --The real export index posted the second straight month-on-month rise in

August, up 2.1% following +0.3% in July.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MAJDS$,M$A$$$,M$J$$$]