Japan Corporate Sentiment Worsens, Capex Plans Revised Up

Sentiment at large Japanese manufacturers worsened for the second consecutive quarter over April-June due to a rising yen, although companies did revise up their capital expenditure plans. Large manufacturers said they expect sentiment to rebound in July-September, offering encouragement to policymakers navigating weak exports and lingering concerns about the global economy. The survey results could offer some relief to the Bank of Japan, which holds a monetary policy meeting later this weak. The upgrade of capital expenditure plans should bolster the central bank’s argument that its negative interest rate policy would spur lending.