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.
Key Findings:
“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.
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