The latest Reuters Tankan survey of the Japanese manufacturers showed this Thursday that the mood amongst them remained pessimistic in January amid sluggish global demand and the US-China trade issue.
“The sentiment index for manufacturers stood at minus 6, unchanged from the previous month, according to the survey conducted Dec. 25-Jan. 10. But it was seen rising to zero in April.
The service-sector index was also unchanged, at plus 14, and was seen slipping one point to plus 13 in April.
The BOJ’s tankan showed last month that big manufacturers’ mood hit a near seven-year low in October-December as the trade war between the world’s two largest economies dragged on.”
“Customers are taking a wait-to-see stance due to effects of the U.S.-China trade war, which has led to inventory adjustments and curbed demand,” a paper/pulp maker wrote in the survey.
A chemicals maker wrote: “Car markets are cooling globally with the major Chinese market particularly being weak.”
The weak Japanese manufacturing sector survey had little to no impact on the Japanese yen, as it continues to take cues from the broad market sentiment, in the face of the US-China phase one trade deal conclusion.
At the press time, USD/JPY trades modestly flat around 109.95, having failed to resist above the 110 handle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.