BOJ tankan seen showing improved business mood, capex

A central bank survey out next week is expected to show Japanese business confidence improved in the three months to December as robust fiscal and household spending made up for soft exports — thanks to Premier Shinzo Abe’s stimulus policies. Such readings will underscore the Bank of Japan’s view that the economy is recovering moderately and allow it to hold off on expanding stimulus in coming months, although some analysts warn of economic uncertainties next year. “The tankan will be in line with the BOJ’s upbeat projections and offer no reason to ease policy,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute. “The economy will be booming until the sales tax hike in April.


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