Exports to China, Europe and Asia expanded at the slowest pace, with shipments to China increasing at 16.5% compared to 23.7% in August. Asian exports also rose 8.3% after firming 16.4% in the month earlier and shipments to Europe surged 13.2% against 15.5% in August.

Slowing export growth stocked expectations that Japan’s economic expansion may slow down as domestic consumer spending is still weak and declining. Japan’s GDP shrank by an annualized 1.2% in the second quarter. The IMF last week revised downwards its estimate of annual economic growth to 1.7% from 2%.

The yen continued to firm against the dollar, buoyed by the widening trade surplus and reports by Market News International that a National Development and Reform Commission report recommended that China should reduce the value of the yen by 20%. It was quoted at 114.27 to the dollar at the close of trade and 162.23 from 162.26 against the euro.

The Australian, news service in Australia, reported today that Kansai Electric Power Company is seeking to double its procurement of uranium in Australia. Kansai Electric Power Co executive vice president Mitsuyasu Iwata was attending this week’s 45th Japan-Australia Joint Business Conference in Tokyo. The company was tasked by the government with lifting nuclear share of Japanese power generation to 40%.

Of the Nikkei 225 index shares, Fast Retailing led gainers with a rise of 6.83% followed by gains in Chugai Pharmaceutical Company of 5.27%, in Sumitomo Chemical Company of 5.27%, in Mitsui Electric Company of 3.38%, and Clarion Company Limited of 3.11%.

Pharmaceutical companies gained after Chugai Pharmaceutical Company’s third quarter profit jumped 8.5% on increase sales of Tamiflu and Nuetrogen. Nikkei reports Takeda Pharmaceutical may post a 16% increase in operating profit in the year ending March 31 on increased sell of a diabetes drug in the U.S. Takeda closed up 1.13%.

Commodity related stocks rose on increasing metal prices. Copper edged up 0.5% and Zinc surged 1.1%. Nippon Mining House climbed 0.85% and Japan Steel Works gained 1.36%.

Shinsei Bank Limited led the decliners in the index with a loss of 6.76%, followed by losses of 5.15% in Daiichi Sankyo, of 5% in Kyowa Hakko Kgoya, 3.96% in Yokogawa Electric, and 3.87% in Toho Company Limited.

Financial stocks plunged after the New York Times reported that the U.S. broker Merrill Lynch & Company will probably add $2.5 billion of write-downs to $5 billion it disclosed earlier this month. Banks and financial services companies fell on the news. Mitsubishi UFJ Financial Group fell 0.76%, Mizuho Financial Group declined 1.45% and Sumitomo Mitsui Financial Group retreated 1.29%.

Bloomberg news reported today that mobile phone company KDDI Corp will miss its target of fixed line service customers by 140,000 users this year as customers are reluctant to pay a 34% premium for the network upgrade. The company had targeted 900, 000 users by March 2008 from the current 668,000.

5:00PM Sydney, 3:00AM New York – Australian stocks fell on the subprime lending worries in the U.S. and rising domestic inflation.

In Sydney trading ASX 200 Index declined by 0.4% or 26.50 to 6,634.40. Rio Tinto declined 1.8% and BHP lost 0.4%. Preliminary stock turnover was 2.08 billion shares worth A$7.5 billion, with 617 stocks up, 626 down and 387 unchanged. Newsat was the most active stock with 96.6 million shares changing hands, BHP Billiton was the most active stock on A$1.1 billion value, and had the largest number of trades totaling 11,265 trades.

Rio Tinto today announced that 298.759 million common shares of Alcan Inc. (which represent approximately 79.41% of the outstanding shares on a fully diluted basis) have been deposited for the offer by Rio Tinto Canada Holding Inc (RTCH).

The company said in a statement that its Canadian-based subsidiary has also received notices of guaranteed delivery covering an additional 21,336,000 Alcan common shares (which represent approximately 5.67% of the outstanding shares on a fully diluted basis).
It added that all of the conditions of the take-over offer have been satisfied and the initial offering period, which was extended until October 23, 2007, is now closed for acceptance.

Since RTCH has taken up all the Alcan shares deposited under the Offer, these shares may no longer be withdrawn. Payment for the deposited shares will be made to the depository on October 25, 2007.

RTCH has in the meantime extended the Offer until 6:00 P.M. (Canadian Eastern Time) on November 8, 2007 by commencing a subsequent offering period (the """"Subsequent Offering Period"""") to allow those Alcan shareholders who have not already deposited their shares under the Offer the chance to do so. They will receive U.S.$101 per share as was offered during the initial offering period.

Rio Tinto''s chairman, Paul Skinner said: """"We have been working towards our offer for Alcan becoming unconditional and have now passed the final milestone, with more than two thirds of Alcan shareholders having tendered their shares.""""

If RTCH acquires more than 90% of the Alcan shares, upon expiry of the Offer, it intends to acquire all shares it does not then own by way of statutory compulsory acquisition pursuant to the Canada Business Corporations Act.

Australian Bureau of Statistics reported CPI index, a measure of inflation, during the quarter ending in September 2007 rose 0.7% compared to 1.2% increase in the second quarter ending in June 2007. For the year to September 2007 the CPI increased 1.9%. The inflation number declined in the quarter because government deducted the child care payment from the inflation calculation.

As a result it was considered to be part of the tax system and therefore not included in the CPI but from the current financial year the CCTR is payable regardless of the family''s tax liability, taking it out of the income tax system, meaning it is now included in the cost of child care.

Child care makes up only a third of 1% of the CPI, but such large moves in even a small component can have an effect on the bottom line.

While the CPI rose by 0.7% overall, excluding child care costs the quarterly rise would have been 0.9%.