Japan Tankan SurveyBy scorpion
Published: November 8, 2009
Data: Bank of Japan
Release time: 8:50 local time at the start of April, July, October and mid December
Source: Bank of Japan
Japan Tankan Survey is a largely influential Japanese economic confidence survey carried out every quarter of the year to gauge the business confidence or in confidence among different business executives.
How important is t?
This is one of the most important economic reports in the Japanese economic calendar with far reaching impacts across the globe. All multinational companies doing business in the eastern region look up to this report to gauge the future of the economy given that Japan is the world’s second largest economy after the U.S.
Any one interested in getting an insight into possible future economic activities in Japan is well advised to take this report very seriously. This is because the report is not only about sentiments but rather affects the country’s monetary policy a great deal
How is it computed?
The research and statistics department at the bank of Japan carries out a survey that entails the ending out of relevant questionnaires to business executives across the country in the last month of every quarter. The survey covers about 9,000 firms across the different sectors that matter to the economy giving a grouping that classifies firms by their sizes as well as industry in order to get a true sentiment from as wide a cross section as possible.
How does it influence forex trade?
The Japanese tankan survey has great effect on the forex tradeoff the entire world since Japan is a major world economy. Given tat the Bank of Japan makes its monetary policy basin on the report of the survey, it is quite evident that the out come of the survey will greatly determine the bank of Japan’s decisions regarding the country’s interest rates. This will thus influence the yen’s exchange rates against other major currencies. It is in no doubt that this report clearly reflects the impending economic activity in the country such as manufacture, production as well as the import and export business. All these have a direct impact on the forex rates since it is this activity that will determine the eventual trade balance or imbalance.
How does it affect the stock market?
The stock market is always about investor attitudes at any given time. This attitude is influenced by perceptions whether true o false that the investors may harbor regarding a certain sector. It is thus almost impossible to de-link this report to the activities of the stock market since investors must always adjust their strategies accordingly in the face of any anticipated change. If this report points towards an imminent decline in economic activity, the investors may as well decide to sellout their share holdings in an effort to escape any losses that may come as a result. This attitude obviously leads to a sudden decline in share prices as demand of the same are likely to decline. On he other hand should the opposite be perceived, the share holdings prices are automatically going o shoot p as very body tries to get a potion of the soon to-be profitable share holdings. This will not only affect the country of Japan but the entire region as many investors from across the borers may also opt to invest in a promising economy.- 7024 Views
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