Tankan Survey Results Weighs on Tokyo Stocks

October 1, 2009 Share Print 0

apan’s Nikkei 225 finished 1.5% lower at 9978.64, ending below the psychologically-crucial 10000-point level for the first time since late July. While the yen’s recent strength hurt exporters, the broad market was pressured by the outcome of the tankan survey.

Although the survey showed sentiment among Japan’s large manufacturers was improving, their capital expenditure plans for this fiscal year were weaker than the previous survey, which was a slight negative for the stock market, said Yumi Nishimura, market analyst at Daiwa Securities SMBC.

“We knew that companies would not increase capital spending any time soon, but the results suggest that poor spending may drag on,” she said.

Wall Street Journal

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.