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Japan's Tankan projects optimism; First time since 2011

Posted by Akhilesh Ganti on Jun 30, 2013 8:20:00 PM

The BOJ's quarterly Tankan index for large manufacturers came out at +4, exceeding both market forecasts of +3 and last quarters' reading of -8. A positive number indicates that optimists outnumber the pessimists. This was the first time since September 2011 that large Japanese manufacturers turned optimistic which might be an indication of their increasing confidence in "Abenomics". Large companies from all industries plan to increase capital spending by +5.5% through March 2014 which was also higher than estimates of +2.9%. USD/JPY ratcheted higher following the release and took out stops above 99.50 before retreating back to the 99.30 level.

Japan Tankan 2Q2013 resized 600

{chart:Bloomberg}

 

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