Home > market, news > Japan Tankan Survey May Show Fourth Straight Rise in Sentiment

Japan Tankan Survey May Show Fourth Straight Rise in Sentiment

March 31 (Bloomberg)

The Bank of Japan’s Tankan survey will probably show that business sentiment improved for a fourth straight quarter, approaching levels before the global financial crisis intensified 18 months ago.

The Tankan index of sentiment among large manufacturers will climb 11 points to minus 14 in March, according to the median forecast of 23 economists surveyed by Bloomberg News. A negative number means pessimists outnumber optimists.

Companies including Toshiba Corp. are investing again, a sign that companies have recovered from global fallout spurred by Lehman Brothers Holdings Inc.’s collapse in September 2008. Signs of improvement may persuade central bank Governor Masaaki Shirakawa and his policy board to hold off on easing policy next week after already doubling a credit program to banks in March.

“Concerns over a double-dip recession have receded considerably and corporate profits have turned up on export growth, which has improved business confidence,” said Hideo Kumano, chief economist at Dai-Ichi Life Research Institute in Tokyo and a former Bank of Japan official. “The Tankan could be used by the BOJ as evidence that the real economy is solid, if it’s asked to undertake more monetary easing.”

Prime Minister Yukio Hatoyama’s government has repeatedly called on the central bank to help stem deflation that threatens to stunt the nation’s recovery from its worst postwar recession.

Seems like all asian are ready for a stronger recovery in 2010. Will Japan lead us towards expansion?

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