Japan Macro Update

The June BOJ Tankan survey indicates strong corporate sentiment and pricing power, supporting a continued equities rally despite geopolitical uncertainties. Mizuho projects a moderate rate hike path by the BOJ unless inflation expectations show further acceleration in September.

Key Takeaways

• 1.The June BOJ Tankan survey shows robust sentiment improvements in large manufacturers and nonmanufacturers, driven by AI and semiconductor demand.
• 2.Strong input and output price DIs suggest companies are successfully passing costs through to consumers, sustaining an equities rally.

Table of Contents

• What the BOJ Tankan tells us about the background to the ongoing equities rally, and possible implications for monetary policy
• Important Disclosure Information
• Analyst Certification
• Disclaimer

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