Japan's Business Sentiment Should Stay Buoyant -- Market Talk

Dow Jones12-15

1012 GMT - Japan's Tankan survey of business sentiment shows corporate sentiment remains resilient and is likely to stay buoyant moving forward, HSBC economists say in a note. They expect corporate optimism to be supported by the government's stimulus package, which should meaningfully boost private consumption. On a macro level, the survey's results suggest the September quarter's GDP contraction from the previous quarter was likely a temporary setback and not a shift in trend, with on-quarter growth expected to turn positive in the December quarter, they add. The results also reinforce HSBC's base case for a 25bp rate hike to 0.75% this week by the Bank of Japan. "With corporate sentiment holding firm despite global trade policy uncertainties, the BoJ now has an even stronger mandate to proceed with further rate hikes," HSBC says. (jason.chau@wsj.com)

 

(END) Dow Jones Newswires

December 15, 2025 05:12 ET (10:12 GMT)

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