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Jul 24, 2014

Japan June exports slide in warning sign for economic outlook

TOKYO (Reuters) – Japan’s exports unexpectedly fell in June for a second straight month in a worrying signal that weak external demand could continue to drag on the economy’s recovery from a sales tax rise.

Exports fell 2.0 percent in June from a year earlier, compared with a 1.0 percent increase expected by economists in a Reuters poll, data from the Ministry of Finance showed on Thursday.

Jul 22, 2014

Japan government trims economic growth estimate for this year

TOKYO (Reuters) – Japan’s government slightly lowered its growth forecast for the current fiscal year due to sluggish exports and a drop in demand after the April sales-tax hike, but the forecasts were largely in line with the Bank of Japan’s projections.

Members of the government’s top advisory panel did not object to the BOJ’s view that consumer prices will continue to rise under its quantitative easing program, showing there is little difference between the government’s and the BOJ’s assessment of the economy.

Jul 22, 2014

Japan gov’t trims economic growth estimate for this year

TOKYO, July 22 (Reuters) – Japan’s government slightly
lowered its growth forecast for the current fiscal year due to
sluggish exports and a drop in demand after the April sales-tax
hike, but the forecasts were largely in line with the Bank of
Japan’s projections.

Members of the government’s top advisory panel did not
object to the BOJ’s view that consumer prices will continue to
rise under its quantitative easing programme, showing there is
little difference between the government’s and the BOJ’s
assessment of the economy.

Jul 16, 2014

Japan manufacturers’ mood points to moderate econ recovery -Reuters Tankan

TOKYO, July 17 (Reuters) – Confidence among Japanese
manufacturers held steady for a second straight month in July
and is seen likely to edge up, a Reuters poll found, offering
further evidence of sentiment gradually recovering from April’s
sales tax hike.

Reflecting weak private consumption, the service-sector mood
including retailers slid in July, but it is seen rebounding over
the next three months, according to the Reuters Tankan poll of
400 big firms between June 30 and July 14, of which 280 replied.

Jul 9, 2014

Japan Abe adviser, in reversal, sees no need for more BOJ stimulus

TOKYO (Reuters) – A key economic adviser to Japanese Prime Minister Shinzo Abe, reversing his previous position, said on Wednesday that he sees no need for the Bank of Japan to add to its massive stimulus as the economy is pulling out of deflation.

Etsuro Honda, a prominent outside architect of Abe’s reflationary policies, told Reuters the economy appears to be on track to hit the BOJ’s 2 percent inflation target next year.

Jul 1, 2014

Japan firms see bigger spending, outlook mixed: BOJ tankan

pital expeniTOKYO (Reuters) – Major Japanese companies plan to increase spending more than expected this year, Bank of Japan’s “tankan” survey showed, adding to signs the country’s economic recovery will get back on track after an expected slip in the second quarter.

Business sentiment among big manufacturers’ worsened in the three months to June but is poised to improve in the following quarter, the central bank survey found, reinforcing a growing market view the economy will shrug off April’s sales tax hike.

Jul 1, 2014

Tax hike hits Japan business mood, but outlook upbeat: BOJ tankan

TOKYO (Reuters) – Big Japanese manufacturers’ business sentiment worsened in the three months to June but is poised to improve in the following quarter, a central bank survey showed, adding to signs the economy will shrug off April’s sales tax hike.

Big firms also plan to raise capital expenditure by 7.4 percent in the current fiscal year ending in March 2015, more than initially expected, as premier Shinzo Abe’s stimulus policies brighten prospects for the world’s third-largest economy.

Jun 30, 2014

Japan industrial output rises, signals economic recovery

TOKYO (Reuters) – Japan’s factory output rose in May after companies cut production in April to offset the impact of a national sales tax hike, underscoring views the economy will absorb the increase largely unscathed.

The 0.5 percent month-on-month rise compared with the median estimate of a 0.9 percent increase in a Reuters poll of economists, and followed a 2.8 percent drop in April, data from the Ministry of Economy, Trade and Industry showed On Monday.

Jun 29, 2014

In corporate tax reform, Abenomics giveth, and taketh away

TOKYO (Reuters) – For corporate Japan, burdened by one of the industrialized world’s steepest tax rates, a tax cut at the center of Prime Minister Shinzo Abe’s latest growth strategy will end up giving with one hand – and taking back with the other.

While the headline tax rate will fall, Tokyo, under pressure to shore up its finances with a public debt twice its annual GDP, is seeking to offset the tax cut by scaling back exemptions and deductions favoring small and loss-making companies.

Jun 24, 2014

Arrow or Dart? Japan’s Abe unveils latest reform plan

TOKYO (Reuters) – Prime Minister Shinzo Abe unveiled a package of measures on Tuesday aimed at boosting Japan’s long-term economic growth, from phased-in corporate tax cuts to a bigger role for women and foreign workers, but applause from investors is likely to be muted after Tokyo backpedalled on bolder reforms.

Japan’s economy has shown signs of revival since Abe took office 18 months ago pledging to end deflation and generate sustainable growth with a triple-pronged strategy he called his “Three Arrows”, but policymakers acknowledge that more must be done to cement the recovery after two decades of stagnation.