Japanese business sentiment was reported to be in stable condition in the three months to December, on Monday (14/12) morning. The survey results are also the subject of observations in the central bank's policy decisions, be an antidote to concerns arising from global economic uncertainty, and may affect the readiness of a company to draw up a budget.
Japanese Business Conditions Still Good
Tankan manufacturing index for companies in Japan steady at plus 12 for the fourth quarter, while the company's non-manufacturing index went down by one point to plus 18 from the previous plus 19. A positive number in the Tankan index indicates that most companies in the country of the Rising Sun is still projecting better business conditions. In addition, they also still firmly against capital expenditure plans up to March 2016.
This is a green light for Prime Minister Shinzo Abe to try to encourage companies in Japan to invest their profits even more. Large companies are expected to increase capital expenditure as much as 10.8 percent in this fiscal year.
"A number of plants are likely to postpone their capital expenditure with respect to the reflection slowdown in China and the other developing countries. However, overall, these companies still retain their budget plan that is likely bullish," explained one member BOJ cited by Reuters.
For information, on Saturday, China released data on industrial production for November were up 6.2 per cent on an annual basis, with output growth of the industry is performing better than expected. After this report, the USD / JPY was trading at 120.86, down 0:10 percent after the data was announced.
No comments:
Post a Comment