BoJ Tankan
The Japanese Tankan survey of business sentiment for larger manufacturers has seen improvement for the third consecutive quarter, reaching the level +25 from +24 in September. The reading matched the experts forecasts who advanced a reading of +21. Larger non-manufacturers reached the level +22 from +20 the previous quarter, mid size manufacturers have recorded +17 from +14 the previous quarter.
- Japan’s 4Q Tankan business index shows improvement, in line with expectations by FXstreet.com
- Read the Tankan Outline (December 2006) at the Bank of Japan
In-Depth Analysis
- Overnight Briefing: Far East Timezone - Tankan at two-year high by Jyske Bank
- Japan: Strong Tankan makes January hike increasingly likely by Danske Bank A/S
- US Open Market Points - Tankan Strong But No Help to Yen by FXCM
- Global FX Daily: European Edition - Tankan is fairly decent but BoJ expectations remain flat by Mellon Foreign Exchange
Related News
- Japan Tankan shows rising confidence among big, small cos; outlook hazy (AFX News)
- Japan's Tankan shows corporate sentiment improving - Shinko Research (AFX News)
- Japan business confidence hits 2-yr high, latest Tankan shows (AFX News)
- BoJ Tankan - All firms' production capacity diffusion index minus 1 vs zero (AFX News)
- BoJ Tankan - Dec large manufacturers sales price index plus 1 vs plus 2 in Sept (AFX News)
- BoJ Tankan - Dec large manufacturers inventory index plus 14 vs plus 15 (AFX News)
Analysts' comments
- Tony Juste, FX Advisor at FXstreet.com:
"Was the Tankan out yesterday? Really? I thought it was one of the events for this month ... but the market stood still after the release, in the other hand, of solid figures, confirming that Japan's economy is ready for more rate hikes, despite their current interest in keeping things as they are (they are the real beneficiaries of the current FX market moves). Next week's BoJ interest rate announcement should take the Tankan report data quite seriously as it may indicate future strength in the next quarters." - FXstreet.com - Kenji Arata, economist at Informa Global Markets:
"The Tankan survey, as a whole, confirmed that despite some worries that the Japanese economy might already have peaked out, it continued its solid recovery, led by the corporate sector." - AFX News - Junichi Makino, senior economist at Daiwa Institute of Research:
"While the Tankan underscored the solid trend of the corporate sector which had supported economic growth in the past few years, it also highlighted growing wariness among corporate managers due to a slowdown in the US economy and weakness in domestic consumer spending." - AFX News - Benedikt Germanier, currency strategist at UBS in Zurich
"The tankan couldn't really help the yen. It is a good sign but will it be enough for the market to look for a rate hike in December? We don't think so. So from rate expectations we see no trigger to buy the yen." - Reuters - Ian Stannard, currency strategist at BNP Paribas
"This positive news from Japan is unlikely to be enough to spark renewed speculation for an early BoJ rate hike given the continued media reports suggesting that a December hike is unlikely." - AFX News - Noriyuki Kato, treasury manager at State Street Global Markets
"The BOJ's rate hike next week is completely ruled out, so it's easy for the market to go with the flow and sell the yen." - Reuters
