Sentiment at Japan’s big businesses improves despite looming threat from China
As per the latest Reuters Tankan monthly survey for August, optimism at Japan’s big manufacturing and non-manufacturing companies improves even as concerns about China prod the optimism.
That said, the headline big manufacturers’ Sentiment Index came in at 12 versus 3 marked in July whereas the non-manufacturers’ Sentiment Index jumps to 32 for August from 23 marked the previous month. Further details unveil that the big manufacturer’s Outlook Index was seen at 14 in November while the same for the services sector could flash the 26 mark in November.
As an additional finding, the survey report also stated that the Japanese business mood improves but China’s impact dims outlook.
Market impact
The news fails to move the needle of the USD/JPY pair as it stays firmer around 145.60 while targeting the yearly peak from which the Yen pair reversed the previous day, due to the initial pullback in the US Dollar.
Also read:USD/JPY trades flat following US Retail Sales, still above 145.00