REPEAT: MNI: Japan Output To Rebound From Storm-Hit Oct

Repeats Story Initially Transmitted at 01:31 GMT Nov 30/20:31 EST Nov 29

     TOKYO (MNI) - A series of major typhoons in the Asian region unexpectedly

lowered Japanese factory output in October to a slight gain from the previous

month, but producers polled by the government expect solid growth in the fourth

quarter.

     Industrial production rose just 0.5% on month in October, coming in much

weaker than the 2.0% median forecast by economists polled by MNI.

     The increase was led by production of electric machinery and transport

equipment but decreases in chemicals as well as petroleum and coal products

limited the overall output gain.

     "Chemical producers and refineries had many routine shutdowns for safety

checks," an official at the Ministry of Economy, Trade and Industry said.

     "Production and shipments were also hit by three typhoons. One in the

Philippines and Vietnam delayed imports of parts and raw materials to Japan

while two more hit Japan, delaying exports to North America."

     Stormy weather that hit many parts of Japan two weekends in a row dampened

sentiment and retail sales in October but it is unusual for typhoons to have a

major effect on overall industrial production.

     In October, output of electronic parts and devices also slipped but it is

too early to assess the strength of the demand for components to be used in the

iPhone X smartphone released in November, the METI official said.

     On the upside, the suspension of production and shipments by Nissan Motor

in the wake of its below-standard vehicle inspection scandal "had little impact

on industrial production" because car output for exports was unaffected, he

said.

     The METI forecast for factory output based on its survey is +2.8% on month

in November (revised up from -0.9% projected last month) and +3.5% in December.

Based on these projections, production in the October-December quarter is

estimated to jump 3.6% on quarter after a modest 0.4% gain in July-September and

2.1% rise in April-June.

     But adjusting the upward bias in output plans, the METI projected

production would fall 0.1% on month in November but the METI believes the 3.5%

projection should be intact. Based on this assumption, Q4 factory output would

still show a solid 1.6% gain on quarter.

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com