Japan Industrial Output Misses at -0.5% on Petrochem Slump, Pressures Japan 225

Japan's industrial production fell 0.5% month-on-month in March, missing the +1.1% consensus amid Strait of Hormuz disruptions choking petrochemical and fuel output. Polyethylene plunged 27%, polypropylene 15%, gasoline 7.3%, and diesel 14.3%, amplifying import inflation and growth risks while limiting Bank of Japan options. METI highlights a 1.8-month inventory buffer and forecasts a -0.7% April dip before +2.2% May rebound; resilient +1.7% YoY retail sales tempers the negativity, but the miss weighs on Japan 225.