Japan Factory Output Rebounds 2.2% in September as Retail Sales and Inflation Cool

The Japanese yen strengthened toward 157 per US dollar following a raft of mixed economic data ahead of the Bank of Japan's rate decision. Japan's industrial production rebounded 2.2% month-over-month in September, topping forecasts of 1.3% and rebounding from August's 2.4% contraction. The unemployment rate unexpectedly fell to 2.4%. However, domestic consumption softened as retail sales fell 0.7% month-over-month and rose 2.3% year-over-year, missing expectations of 3.3%. Additionally, Tokyo's core CPI slowed to 2.6% in October. The Bank of Japan is widely expected to hold its benchmark policy rate at 1.25%.