Japan Business Sentiment Rises For First time in Two Years

Japanese manufacturers’ sentiment has turned positive for the first time in nearly two years, the Bank of Japan’s Tankan survey has indicated.

The big manufacturers’ index rose to plus 4 in the April-to-June period, from minus 8 in the previous quarter.

Large manufacturers also plan to boost their capital spending in the current financial year, the survey showed.

Japan has unveiled aggressive policy moves in recent months to try to spur growth in its stagnant economy.

Analysts said the survey’s results indicated that the policies were starting to have an impact.

“The Tankan confirmed that expectations among big Japanese manufacturers for a weaker yen and a steady economic recovery more than offset recent market turmoil,” said Takeshi Minami, chief economist as Norinchukin Research Institute, in Tokyo.

via BBC

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Alfonso Esparza

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.
Alfonso Esparza