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China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Global Financial Firms Shift Asia Expansion Focus to South Korea as China, India Face Caution 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
Trump Suspends Some Morocco Fertilizer Tariffs to Ease U.S. Supply Shortage 
Yen Falls to 40-Year Low as Markets Watch Japan Intervention and U.S. Jobs Report 
Trump Urges Gasoline Retailers to Cut Prices to $2.50 Per Gallon, Warns of Legal Action 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Asian Stocks End Strong Quarter as Dollar Surges, Yen Hits 40-Year Low Ahead of US Jobs Data 
US Stock Futures Steady as Investors Await Payrolls Data and Monitor Iran Tensions 
Argentina Economy Shrinks 1.5% in April, Recovery Under Milei Loses Momentum 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
RBA Minutes Signal Australia Central Bank Remains Ready to Raise Interest Rates if Inflation Persists 
Wall Street Futures Rise Ahead of JOLTS Data, Nike Earnings, and U.S.-Iran Talks 
Gold Prices Drop as Fed Rate Outlook and Iran Tensions Weigh on Market 
China Factory PMI Seen Returning to Growth in June as AI Export Demand Supports Economy 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Japan's Core Consumer Inflation Likely Eased in September Amid Slowing Export Growth
Japan's core consumer inflation rate likely eased in September due to a decline in energy costs, which was helped by government subsidies, according to a Reuters poll. The core Consumer Price Index (CPI), which tracks oil products but excludes fresh food, is expected to have risen 2.3% year-over-year in September, down from 2.8% in August, based on a survey of 18 economists.
Takeshi Minami, chief economist at Norinchukin Research Institute, explained, "The pace of increase in consumer inflation likely eased due to lower electricity and city gas prices, though prices for certain food items, such as rice, were higher."
Export Growth Slows Amid Global Manufacturing Weakness
The poll also revealed that Japan's export growth slowed in September, with an expected increase of only 0.5%, down sharply from 5.5% in August. Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute, linked this slowdown to weak global manufacturing activity. Meanwhile, imports are forecasted to have risen 3.2%, leading to a trade deficit of 237.6 billion yen.
Upcoming Data Releases:
- CPI Data: The Ministry of Internal Affairs and Communications is set to release the CPI data at 8:30 a.m. JST on October 20.
- Trade Data: The Ministry of Finance will announce trade figures at 8:50 a.m. JST on October 19.
- Machinery Orders: Machinery orders, a volatile yet leading indicator for capital spending over the next six to nine months, are projected to have fallen 0.1% month-on-month in August, the same rate of decline as in July.
Tsunoda further noted signs of cautious business spending: "Although companies maintain a generally positive investment outlook, there are signs of delays in capital spending due to external factors, including China's economic slowdown."
