Japanese business sentiment has bounced back despite problems with Covid-19
Japanese business sentiment was revived in the first quarter of 2021 despite a renewed emergency in Covid-19, suggesting that Asia’s most advanced economy will recover quickly from the pandemic.
Bank of Japan Tankan index for large manufacturers they rose 15 points to a 5-plus reading, which would remain in negative territory much later than analysts ’expectations minus 2.
He suggested the optimistic sentiment of Japanese industrial companies global spread of vaccines, strong growth in China and great hope US stimulus they were improving the business environment of the exporters.
The positive outlook has been particularly striking given that they have been the largest cities in Japan partially blocked as of mid-January, office staff were asked to work from home and restaurants closed at 8 p.m.
The quarterly Tankan index It is one of the best economic indicators in Japan and is observed by the Bank of Japan to monitor the business cycle. The survey includes nearly 10,000 companies with a 99 percent response rate.
Companies were asked whether the terms of the business were favorable or unfavorable, with the last measure being removed from the former. As a result, an index of 100 to 100 can be found, and readings above 0 suggest positive business conditions.
The Japanese companies were fewer than their U.S. counterparts and merged with European counterparts, said John Vail, chief strategist at Nikko Asset Management. “Japan and Europe had winds during March,” he said.
“Improvements are expected to be rapid in the coming quarters, although the shortage of automotive semiconductors is somewhat hampered,” he added.
A fire last month The Renesas Electronics plant in northern Tokyo has deepened the global chip shortage that is hampering car production.
There was a significant rebound in the cyclical industry, reducing sentiment in the oil sector from 19 to 19, reducing iron and steel from 25 to 5 and reducing chemicals from 5 to 5. The sentiment of the crucial automotive sector diminished. From the 13th to the 10th, the production machinery – which has a large export to China – rose from at least the 21st to the 8th.
The recovery in the services sector was more modest, reducing overall sentiment from 5 to 1 with strong figures in construction and business services, but the renewed state of emergency had hotels and restaurants where sentiment was reduced from 66 to 81.
The company expects an increase in investment of 3% this year and an exchange rate of around 106 ¥ against the dollar, compared to the current rate of more than 110. Weaker currencies and strong investment plans were expected boost the economy later in the year.
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