Fears of a China-led global downturn dampen Japan's business outlook

Lallalit Srijandorn FXStreet

According to Reuters, confidence among major Japanese manufacturers has dropped the most in eight months, while morale in the services sector has also fallen amid concerns that a slowing Chinese economy would drag on global and domestic growth, a Reuters poll for September showed on Wednesday.

Key Quote

"Our business conditions are not so good due to uncertainty surrounding the global economy such as geopolitical risks stemming from a prolonged war in Ukraine and rising tension between U.S.-China frictions,”

"Overseas markets, particularly in China, are slumping and domestic demand is also languishing,”

Market reaction

The above statement fails to move the needle around the Japanese Yen. USD/JPY is trading at 147.10, up 0.01% on the day.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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