BOJ Maintains Regional Assessments Despite China Slowdown

The Bank of Japan on Monday maintained its assessment of all nine regional economies from July on the back of improving capital investment and employment conditions, despite the slump in Chinese and emerging economies.

The central bank used the word “recovering” or “recovering moderately” to describe the state of the regional economies, though exports and output in three regions including the Kanto area centering on Tokyo were dented by the slowdown in emerging economies.

The BOJ believes the impact from deceleration in emerging economies on these regions “should require caution,” but the economic assessment was not affected, a BOJ official said.

Four regions, including the Tokai region where Toyota Motor Corp. is based, downgraded their view on production, saying output had recently been “more or less flat” due mainly to the effects of the slowdown in emerging economies.

Meanwhile, eight regions lifted their assessment on housing investment, while most of the regions maintained their view that personal consumption was picking up or had been resilient as employment and income continue to improve.

BOJ Osaka branch manager Atsushi Miyanoya told a press conference that the Kansai regional economy was also supported by international tourism despite a plunge in Chinese stocks in August.

via Mainichi

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

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