An SMBC Nikko economist said Japan’s industrial production is likely to be
supported by AI-related capital expenditure. Industrial output fell 1.7% MoM in
August, a decline the firm attributed in part to automakers suspending
operations at some plants amid earthquake and typhoon disruptions. The economist
said oil supply uncertainty remains elevated, but Japan holds oil stocks
equivalent to roughly 200 days of domestic consumption and has made progress
securing alternative supplies, so the risk of a major oil supply shortfall
appears low.
