Tetsushi's Feed
Sep 30, 2014

Japan’s economy takes another hit as output, spending slump

TOKYO, Sept 30 (Reuters) – Japan’s factory output, consumer
spending and real wages all fell in August, offering fresh signs
of an economy reeling under the hammer-blow of a sales tax hike
and keeping pressure on policymakers to deliver more stimulus to
revive growth.

Although the Bank of Japan is in no mood to deploy
additional easing anytime soon, a run of soft data is raising
doubts about the central bank’s conviction that inflation will
reach its 2 percent goal by around mid-2015.

Sep 30, 2014

Japan’s economy takes another hit as spending, factory output fall

TOKYO (Reuters) – Annual household spending in Japan fell for a fifth straight month in August and factory output unexpectedly declined, highlighting the challenges policymakers face to revive an economy reeling under the strain of a sales tax hike.

The one bright spot came in data showing the jobless rate fell in August, while the availability of jobs stayed at a 22-year high, suggesting that improvements in the job market will ease some of the pain on households.

Sep 22, 2014

OECD says BOJ inflation goal hard to meet, needs new commitment

TOKYO (Reuters) – The Bank of Japan must make a new commitment quickly to meet its 2 percent inflation target because achieving that goal by next spring will be difficult, a senior official at the Organization for Economic Cooperation and Development said on Monday.

OECD Acting Chief Economist Rintaro Tamaki, speaking at a news conference, also urged the Japanese government to proceed with a second sales tax increase next year as planned to help fix its tattered public finances.

Sep 18, 2014

Three quarters of Japanese firms prefer a stronger yen – Reuters poll

TOKYO, Sept 19 (Reuters) – The yen’s rapid descent to
six-year lows against the dollar is starting to push beyond
comfort zones for three quarters of Japanese firms, a Reuters
poll showed, highlighting the potential for profits to be
squeezed as import costs climb.

Japan struggled with a strong currency for much of the past
decade, only gaining sustained relief from late 2012 as Prime
Minister Shinzo Abe came to power and embarked on bold monetary
stimulus.

Sep 18, 2014

Japan’s frail business mood, exports show economy straining under tax hike

TOKYO (Reuters) – Confidence at Japanese manufacturers fell the most in nearly two years in September as a tax increase hit the economy harder than expected, while exports slid in August in a further sign that conditions have deteriorated in the crucial third quarter.

This frailty in the monthly Reuters Tankan business confidence, and the shaky outlook, could raise in coming months the pressure on the BOJ to ease policy further and complicate Prime Minister Shinzo Abe’s decision on whether to raise the national sales tax again.

Sep 17, 2014

Japan manufacturers’ mood falls most in two years, weak bounce seen: Reuters Tankan

TOKYO (Reuters) – Confidence at Japanese manufacturers fell the most in nearly two years in September as a tax increase hit the economy harder than expected, a Reuters poll showed, suggesting further difficulty for the struggling recovery.

The worsening sentiment in the monthly Reuters Tankan, with only a feeble improvement forecast for December, bodes ill for the Bank of Japan’s quarterly tankan survey, which had been forecast to rebound in the third quarter.

Sep 17, 2014

Japan manufacturers’ mood falls most in 2 yrs, weak bounce seen -Reuters Tankan

TOKYO, Sept 18 (Reuters) – Confidence at Japanese
manufacturers fell the most in nearly two years in September as
a tax increase hit the economy harder than expected, a Reuters
poll showed, suggesting further difficulty for the struggling
recovery.

The worsening sentiment in the monthly Reuters Tankan, with
only a feeble improvement forecast for December, bodes ill for
the Bank of Japan’s quarterly tankan survey, which had been
forecast to rebound in the third quarter.

Sep 11, 2014

BOJ chief tells Abe ready to take steps if price goal in doubt

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda told Prime Minister Shinzo Abe he is prepared to take whatever steps needed to achieve the central bank’s 2 percent inflation target if it comes under threat.

In a face-to-face meeting about the economy, however, Kuroda said he received no particular instructions from Abe. Kuroda said he discussed the economy after a sales tax increase in April and told Abe that Japan’s economic momentum remains intact.

Sep 11, 2014

Japan business mood turns positive: government survey

TOKYO (Reuters) – Confidence at big Japanese manufacturers turned positive in July-September and they expect business conditions to improve further in the following quarter, a government survey showed, suggesting a gradual economic recovery from the slump after April’s sales tax hike.

The business survey index (BSI) of sentiment at large manufacturers stood at plus 12.7 in July-September, improving from minus 13.9 in the prior three months. The big manufacturers’ sentiment index is seen improving to plus 15.1 in October-December, it showed.

Sep 10, 2014

Japan machinery orders rise, ease concern about outlook

TOKYO (Reuters) – Japan’s core machinery orders rose for a second straight month in July, a tentative sign of a pickup in business investment that is needed to propel Japan out of the slump caused by April’s sales tax hike.

The 3.5 percent rise in core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, was less than the median estimate of a 4.0 percent increase in a Reuters poll of economists, but still enough to show investment rising.