Business News Asia
Japanese manufacturers’ business sentiment tends to improve in July-September.
The improved sentiment is a good sign for the Bank of Japan (BOJ), which is sticking to its low-interest rate policy in the face of global rate hikes. This led to a subsequent weakening of the yen and government intervention to support the currency for the first time since 1998.
The confidence index for non-major manufacturers remained unchanged at 13, but this was due to the recovery of COVID-19 cases and accelerating inflation offsetting the positive impact of the reopening of the Japanese economy after the pandemic.
Analysts at Mizuho Research and Technologies do not expect manufacturer sentiment to change until 2022, as automotive production is slow to recover, the global economy is weakening, and the semiconductor market is stagnant.
The BOJ’s much-watched Tankan Index is expected to show that sentiment among major producers rose slightly to 11 in September from 9 three months ago.
The index of major producers is expected to remain stable over the next three months, while service sector companies could show a slight improvement.