Updated
Updated · Bloomberg · Jul 1
Japan Manufacturer Sentiment Climbs to 22, Highest Since 2018
Updated
Updated · Bloomberg · Jul 1

Japan Manufacturer Sentiment Climbs to 22, Highest Since 2018

3 articles · Updated · Bloomberg · Jul 1

Summary

  • Japan’s large-manufacturer sentiment index rose to 22 in June from 17, the BOJ’s quarterly Tankan showed, beating every estimate in a Bloomberg survey of economists.
  • The stronger reading marked the highest confidence level since 2018 and came with record inflation expectations, reinforcing the Bank of Japan’s case for further interest-rate increases.
  • The survey adds fresh evidence that corporate conditions remain resilient enough for the BOJ to keep normalizing policy even as higher borrowing costs gradually return.

Insights

Has Japan truly broken its three-decade deflationary curse, or is this recovery just a fragile illusion?
With a wage-price spiral now a risk, can Japan's economy handle higher interest rates without stalling?
As Japan ends its cheap money era, which global markets are most at risk from a capital shock?