Photo: Wikimedia Commons
Japan’s large manufacturer Tankan survey fell to -12 from a previous reading of -3.Economists were looking for the metric to fall to -10.
Negative number means that the pessimists outnumber the optimists.
Bloomberg reports that this is the fifth straight negative reading, and it’s the most negative it has been since March 2010.
SocGen’s Kiyoko Katahira was looking for a reading of -7.
“Large manufacturers probably suffered most from the political tension between China and Japan, and we think business conditions for them will have deteriorated to -7 from -3 in Q3, as Chinese consumers avoided purchases of Japanese products, especially Japanese automobiles,” wrote Katahira in a note prior to the report.
Japan’s exports, particularly to China, have been getting slammed thanks to China’s anti-Japan sentiment.
In a presentation to clients on Tuesday, bond god Jeff Gundlach argued that Japan would embark on aggressive currency debasement in its efforts to stimulate the economy. As such, Gundlach recommended that shorting the yen and buying the Japanese stock market would be a good trade for risk-takers.
Business Insider Emails & Alerts
Site highlights each day to your inbox.