The Japanese Tankan Large Mfg Index arrived poor, at -34 (from expected -31 & prior -8)

The Japanese Tankan Large Mfg Index arrived in at -34 (from expected -31 & prior -8):

• Tankan Large Non-Mfg Index -17 (-20, 8).
• Tankan Large Mfg Outlook -27 (-24,-11).
• Tankan Large Non-Mfg Outlook -14 (-15, -1).
• Tankan Large All Industry Capex.
• Tankan Small Mfg Index -45 (-39, -15).
• Tankan Small Non-Mfg Index -26 (-32,-1).
• Tankan Small Mfg Outlook -47 (-36, -29).
• Tankan Small Non-Mfg Outlook -33 (-30, -19).

There was little response in the yen, although this data is not good reading.

According to a survey conducted from May 28 to June 9 in 2020, approximately 83%of business enterprises in the manufacturing industry in Japan stated that they already experienced an impact of virus on their corporate activities.

An additional of around 15% were concerned about possible impacts in the future. When compared to the last survey, the ratio of affected companies increased by around 10%.

Meanwhile, plans from Prime Minister Shinzo in rolling out a multipronged economic stimulus worth ¥117.1 trillion — by far the largest in modern Japanese history, it is hoped that they can stem the damage of the coronavirus.

The package will feature universal cash handouts of ¥100,000 per individual. Meanwhile, businesses feeling financial strain are eligible to seek out interest-free loans from public and private lenders.

Tokyo separately announced an ¥800 billion relief package that includes cash payments for businesses and private institutions that acquiesce to suspension requests.

USD/JPY outlook

• USD/JPY Forecast: Recovery continues despite limited momentum