Tetsushi's Feed
Apr 17, 2014

Japan government cuts economy view after sales tax; no need for fresh stimulus

TOKYO (Reuters) – Japan’s government slightly cut its overall view on the economy, its first downgrade in a year and a half, but officials shrugged off the need for more stimulus to support the economy.

The government said the economy was on track for a moderate recovery, in keeping with its main overview at its March assessment, but noted there was some weakness in demand after a sales tax increase went into effect on April 1.

Apr 16, 2014

Japan business mood up, outlook clouded by tax hike – Reuters Tankan

TOKYO (Reuters) – Confidence at Japanese manufacturers grew in April for the first time in three months, and a more moderate dip is seen over the next three months, Reuters poll showed, suggesting the impact on economic growth from a sales tax hike may be less pronounced than earlier thought.

The monthly Reuters Tankan, which closely correlates with the Bank of Japan’s tankan survey, gives an early glimpse of business morale after the tax rate rose to 8 percent from 5 percent on April 1. It also showed service-sector sentiment hit a record high.

Apr 10, 2014

BOJ unruffled by Japan’s weak machinery orders, quells stimulus hopes

TOKYO (Reuters) – Japan’s economy took another knock as a gauge of business investment weakened, but the Bank of Japan remained unperturbed and is expected to release optimistic inflation projections as a swing voter on its board turned more confident about the growth outlook.

After racing past its developed country peers in the first half of last year, the world’s third-biggest economy has stuttered in recent quarters as the effects of Tokyo’s aggressive stimulus policies faded.

Apr 10, 2014

Japan machinery orders drop sharply, casts doubt on capital spending

TOKYO (Reuters) – Japan’s core machinery orders fell sharply in February, casting doubt on the strength of capital spending as early signs suggest the world’s third-biggest economy may struggle to cope with a sales tax hike that kicked in this month.

Core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, declined 8.8 percent, Cabinet Office showed on Thursday.

Apr 10, 2014

Live at the Bank of Japan: Kuroda tweaks messaging but not policy

TOKYO (Reuters) – Japan’s central bank governor, Haruhiko Kuroda, gave the yen its biggest boost in over seven months and sent Tokyo stocks tumbling with hawkish comments this week, but his aim was more to jolt market psychology than to signal a change in policy.

Kuroda seized the opportunity to speak directly to financial markets on Tuesday, when the Bank of Japan (BOJ) introduced live news conferences, reinforcing his core message that the recovery in the world’s third-biggest economy was steadily banishing 15 years of deflation.

Apr 1, 2014

Tax hike hurts Japan business mood more than in 1997 – BOJ tankan

TOKYO (Reuters) – Japanese business sentiment barely improved in the three months ending March and the corporate outlook is now considerably weaker than when Japan last raised its sales tax in 1997, the Bank of Japan’s tankan survey showed on Tuesday.

The findings highlight the daunting challenge facing Prime Minister Shinzo Abe in his quest to increase the consumption tax while simultaneously rescuing Japan from years of deflationary stagnation.

Apr 1, 2014

Japan business mood recovery slows, outlook dims: BOJ tankan

TOKYO (Reuters) – Japanese business sentiment barely improved in the three months to March and is set to sour in the following quarter, a closely watched central bank survey showed, underscoring the challenges facing Prime Minister Shinzo Abe in his efforts to reflate the economy out of stagnation.

Big firms expect to increase capital spending only modestly, the BOJ’s tankan quarterly survey showed on Tuesday, reflecting uncertainty over how much a sales tax hike that kicked off on Tuesday could hurt a fragile economic recovery.

Mar 31, 2014

Japan factory output slides, outlook clouded by sales tax hike

TOKYO (Reuters) – Japan’s factory output unexpectedly fell in February at the fastest pace in eight months in a possible sign that the benefits from last-minute demand before an impending sales tax hike may have run their course.

The data adds to growing concerns of a stumble in the economy, and comes on the heels of a separate survey showing manufacturing activity expanded at a slower pace in March.

Mar 28, 2014

Japan February consumer inflation steady, spending hit by weather

TOKYO (Reuters) – Japan’s core consumer prices rose for a ninth straight month in March from a year earlier and labor demand improved – further evidence the economy is making headway against years of deflation and stagnation.

Ministry of Finance data showed household spending and retail sales weakened in February as snowstorms across Japan kept many consumers at home, but there are already signs that sales are accelerating this month as shoppers rush to beat a sales tax hike on April 1.

Mar 20, 2014

Japan ready to roll out more stimulus to cushion sales tax hike

TOKYO (Reuters) – Japan stands ready to unleash further monetary and fiscal stimulus as needed to support the economy if the impact of a coming sales tax hike proves worse than expected, a senior government official said on Thursday.

Japan’s economy is on a firm footing due to brisk domestic demand but the government will closely monitor developments after the April 1 sales tax rise, Deputy Chief Cabinet Secretary Katsunobu Kato told Reuters in an interview.