JAPAN DAYBOOK: Reports for Exports, Machinery Orders

The government reports exports and machinery orders for October today. Government data for the month so far show signs that the economy may shrink this quarter. Industrial output had the biggest drop since February 2009 and the jobless rate unexpectedly climbed. Retail sales declined for the first time this year, while export growth slowed.

TOP STORIES *Toyota Adopts Tesla’s Laptop Battery Strategy for Electric Cars *BMW, Mizuho Tap Sex Appeal of Tokyo’s Middle-Aged Marathon Men

MEDIA *Japan’s Kan Orders 5 Point Cut in Corporate Tax, Nikkei *Microsoft Xbox Sales May Overtake Nintendo Wii Sales, FT *Turkey in Talks With Japan on Nuclear Power Project, Nikkei *Molycorp to Ship Half Its Rare Earth to Japan, Nikkei

WHAT TO WATCH *Japan reports its current account balance for October at 8:50 a.m. Exports to Asia helped the September surplus grow 24 percent to 1.96 trillion yen. Economists surveyed by Bloomberg estimate a 1.48 trillion yen November surplus.

*The government reports machinery orders for October at 8:50 a.m. Orders fell 10.3 percent in September, the first drop in four months, and are expected to have fallen 0.1 percent in October.

EQUITY PREVIEW *Kyorin Holdings Inc. (4569 JT): The Japanese drugmaker said it rejected a merger proposal from Sawai Pharmaceutical Co. (4555 JT) as the companies disagree on the outlook for generic drugs. Sawai’s Dec. 2 offer valued Kyorin at between 1,400 yen and 1,600 yen a share. Kyorin rose 0.4 percent to 1,406 yen. Sawai Pharmaceutical gained 1.1 percent to 6,660 yen.

ANALYST RATINGS FOR NIKKEI 225 COMPANIES *Sumco (3436 JP) cut to underperform at Credit Suisse. *Yokohama Rubber (5101 JP) cut to hold at Citigroup. *Mitsui Mining (5706 JP) raised to neutral at Credit Suisse.

BLOOMBERG TV *09:20 G-Resources Vice Chairman Owen Hegarty. *10:20 Macarthur Coal Chairman Keith De Lacy. *12:40 Vale CFO Guilherme Cavalcanti

MARKETS U.S. stocks erased gains in the final hour of trading, pulling the Standard & Poor’s 500 Index down from a two-year high, after a probe of insider trading reportedly widened and President Barack Obama said he’ll push to overhaul the tax code in two years.

The dollar rose against most of its major counterparts as Treasury yields surged on speculation an agreement to extend tax cuts will boost the economy, increasing demand for U.S. assets.

Copper rose to a 31-month high in New York and reached a record in London on speculation that an extension of U.S. tax cuts will help bolster the economy, increasing demand for the industrial metal.

To contact the editor responsible for this story: Steven McPherson at smcpherson@bloomberg.net

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