BOJ Tankan Survey Reveals Stable Outlook

  • Sentiment among large Japanese manufacturers remained steady during Q3
  • Bank of Japan’s tankan corporate survey showed a main index of +13, unchanged from June
  • Economists forecasted a +13 reading
  • Yen reversed its downtrend against the dollar after BOJ raised interest rates to 0.25% in July

The sentiment among large Japanese manufacturers remained steady during the third quarter, as they weighed the effects of China’s economic slowdown and the yen’s appreciation. The Bank of Japan’s (BOJ) quarterly tankan corporate survey revealed a main index gauging sentiment among big manufacturers at +13, which was unchanged from the previous survey in June. This matched economists’ forecast for a +13 reading. The index represents the percentage of companies that said business conditions were favorable minus those that said conditions were unfavorable. Analysts closely monitor this data to gauge corporate Japan’s mood and assess the nation’s economic health. Following the BOJ’s interest rate hike to 0.25% in late July, the yen reversed its downtrend against the dollar, trading at around 143.70 to the greenback on Tuesday compared to a three-decade low of 162 in early July. A stronger yen makes Japanese exports less competitive globally.

Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about the sentiment among large Japanese manufacturers and their response to economic factors such as China’s slowdown and the yen’s appreciation. It also includes relevant data from the Bank of Japan’s quarterly tankan corporate survey and discusses the impact of the yen on exports. The article is concise, focused, and free from sensationalism or personal opinions.
Noise Level: 8
Noise Justification: The article provides relevant information about the sentiment among large Japanese manufacturers and their response to economic factors such as China’s slowdown and the yen’s appreciation. However, it lacks in-depth analysis or actionable insights, and does not explore consequences of decisions on those who bear the risks nor stay entirely on topic.
Public Companies: Bank of Japan (BOJ)
Key People: Megumi Fujikawa (Author)

Track all markets on TradingView

Financial Relevance: Yes
Financial Markets Impacted: Japanese currency (yen) and Japanese manufacturers
Financial Rating Justification: The article discusses the impact of China’s economic slowdown, the yen’s appreciation, and its effect on Japanese manufacturers, which are financial topics and influence financial markets through exchange rates and export competitiveness.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
Move Size: No market move size mentioned.
Sector: All
Direction: Neutral
Magnitude: Small
Affected Instruments: Stocks

Reported publicly: www.marketwatch.com www.wsj.com