Japan's factory mood hits 3-1/2-year high - Reuters Tankan

As per the latest Reuters Tankan poll data for the month of August 4 to August 16 period, Japanese manufacturers’ business confidence rose in August to hit a more than three-and-half-year high.

Key quotes

"The Reuters Tankan sentiment index for manufacturers rose to 33 from 25 in July, its highest since January 2018, the poll conducted Aug. 4-16 showed."

"The service index rose to 5 from minus 3 the previous month, its highest since February last year. "

"The world's third-largest economy grew an annualized 1.3% in April-June here, thanks to brisk exports and stronger-than-expected consumption."

"But in a worrying sign, found that manufacturers’ mood would slip a little while staying buoyant in three months and service-sector sentiment would recover further."

"The BOJ’s own “tankan” business survey released in July showed business confidence improved to a two-and-half-year high, while service-sector sentiment turned positive for the first time in five quarters."

"Manufacturers’ business confidence was seen falling to 31 in November, while that of service-sector firms was expected to rise to 13."

FX reactions

USD/JPY fails to react to the release, remains steady around 109.79, up 0.02%.