A Bank of Japan official has stated following data today that the Tankan response on Olympic impact was limited but some sectors, such as advertisement and security services, voiced hope of recovery in demand, Reuters reported.
Key quotes from the offical
BoJ Official on Tankan: Most sectors among manufacturers saw sentiment improvement but auto sector worsened due to semiconductor chip shortage;
Pick-up in capex demand at home and overseas helping lift business sentiment in sectors such as machinery, steel, non-ferrous metal;
Some sectors engaged in face-to-face services seeing sentiment improve on gradual rebound in demand for leisure;
Surging raw material costs hurting sentiment among some sectors;
Tankan response on olympic impact was limited but some sectors, such as advertisement and security services, voiced hope of recovery in demand.
Meanwhile, earlier today, just ahead of the Tokyo fix and market open, the Tankan Large Manufacturing Index came in at 14 above prior 5 but below the 15 expected.
About the Tankan Large Manufacturing Index
The Tankan Large Manufacturing Index released by the Bank of Japan presents the overall business conditions of the large manufacturing companies in Japan.
It is an indicator of the Japanese economy as Japan heavily relies on the manufacturing industry that leads to growth for the export-oriented economy.
A result above the 0 level is seen as positive (or bullish) for the JPY, whereas a result below 0 is seen as negative (or bearish).
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