Japanese Stocks Recover Steadily

Japanese stocks edged up on positive overnight cues from the US markets and as weak economic data triggered hopes of the Japanese central bank further boosting growth. The benchmark Nikkei 225 average is up 0.75% at 21916 after easing half a percent in last session. Japan's manufacturing sector contracted the most in seven months in September as firms reduced production amid weak demand, survey data from IHS Markit showed Tuesday. The Jibun Bank final manufacturing Purchasing Managers' Index fell to 48.9 in September from 49.3 in August. The reading came in line with the flash estimate.

Nikkei 225 had recently hit a five month high on hopes of continued ultra-easy monetary policy. Bank of Japan will conduct monetary policy without any prejudice in mind, Governor Tohiko Kuroda said last week. The momentum towards price stability target may be impaired and downside risks likely increased, Kuroda noted.

Japan's industrial production fell 1.2% month-on-month in August, preliminary data from the Ministry of Economy, Trade and Industry showed on Monday. The monthly fall of shipments was 1.4% in August, while inventories remained unchanged and the inventory ratio increased 2.8%. On a yearly basis, industrial production declined 4.7% in August.

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