Monday, 2nd July 2012
In Business In Japan,
Survey reveals optimism among Japanese businesses
A survey carried out by the Bank of Japan (BOJ) has revealed growing optimism among the nation's manufacturers.
The Tankan index, which assesses the business sentiment of large manufacturers in the country, rose in the second quarter of 2012.
Between April and June the index climbed to minus one from a first quarter rating of minus four.
With sentiment rising above initial expectations and demonstrating an overall increase in outlook, analysts are predicting that the BOJ may now put the brakes on the fiscal stimulus plans it was set to introduce.
Speaking to Reuters, Tatsushi Shikano, a Tokyo-based senior economist at Mitsubishi UFG Morgan Stanley Securities, said: "The tankan confirmed the economy is moving in line with the BOJ's forecasts and it is unlikely to prompt the bank to ease policy further anytime soon."
He added that relatively stable foreign economies and increased demand as a result of post-earthquake reconstruction are reviving the fortunes of large companies, though the continued strength of the yen is still causing some anxieties.
Written by Mark Smith