The sentiment amongst the Japanese manufacturing and services firms improved for the second straight month this year, the latest survey conducted by the Bank of Japan (BOJ) showed on Monday.
Key findings
“The headline index for big manufacturers’ sentiment improved to minus 10 in December from minus 27 in September.”
“Big non-manufacturers’ sentiment also recovered to minus 5 from minus 12 in September, roughly matching a Reuters poll of minus 6, the survey showed.”
“Big firms plan to cut their capital expenditure by 1.2% in the current business year to March 2021, a sign slumping profits and uncertainties over the outlook were discouraging firms to ramp up spending.”
Market reaction
USD/JPY treads water around 104.00 amid the upbeat markets, which weighs on the safe-haven US dollar.
Upbeat Japanese data also caps the upside attempts in the spot.