Japanese manufacturers sentiment improved further in June and reached its highest level meter more than two years, a Reuters poll showed the government's reflation policy is to continue to strengthen the morale of a business sign, despite the recent market turmoil.
Monthly survey, however, showed that seven months increased streak is still more a reflection Prime Minister Shinzo Abe Jin Sanan policy prescriptions of the ultra-loose monetary policy, fiscal stimulus, and some pro-growth reforms hopes ratio view of current business conditions.
"Despite the fact that the economy will not be doing so well, the yen is weaker than a positive impact on Japanese companies," a senior economist at Mizuho Research Institute Yasuo Yamamoto said.
"Foreground improve mood, especially manufacturers, reflecting the company's expectations, they will be able to benefit more from a weaker yen."
A recent stock market sell-off, the yen spikes, as well as in the government bond market volatility presents Abe's formula assumes that the improvement of business climate will trigger increased investment, income, spending and economic output of a virtuous cycle of economic recovery concerns.
Loss of confidence would be a blow to Abe's policies and his ruling clique must decisively win the July Senate elections to consolidate its grip on power, the successful implementation of the policy.
But Reuters consulted, and some company officials expressed concern about market volatility, many complain that demand is still sluggish, weak capital spending, and pointed out that the impact of the "Abenomics" not yet implemented.
"Things are opening up gradually, partly due to a weaker yen, but said:" Our sales and maintain a low level of orders received, a machinery manufacturer in the June 3-17 survey of 400 large and medium-sized companies, 304 responded.
"The government has taken a number of measures to beat deflation, but we do not think there is a lot of economic recovery," electrical machinery manufacturer said.
Reuters survey, which is closely related to the close attention of the Bank of Japan Tankan quarterly survey manufacturer's confidence index rose by 8 points to plus 15 in June.
Reuters index marked its second positive month, which shows optimists than pessimists, hit in March 2011, the highest level since, but in a devastating earthquake hit the country's northeast. See the index further increase in September 23.
Compared with three months ago, manufacturers index rose 26 points, expires in July 1 central bank survey showed significant improvement.
The central bank announced in April last year manufacturer's Tankan shows sentiment in January-March the first time in three quarters, it is considered to rise further in the second quarter.
Reuters Tankan manufacturing index rose, driven in part by the exporting country among major improvements, such as car manufacturers and steelmakers.
In the June survey, the service sector index rose 1:00 plus 20 hit the highest level since May 2007, up to September, real estate and construction industries, led by plus 29.
Japan's economic growth in the first quarter, an annualized rate of 4.1%, resulting in the company consumption and export growth, but capital spending for the fifth consecutive quarter of decline.
That consumer weakness continued in April core machinery orders fell for the first time in three months, the company is still hesitant to increase capital expenditures.
Tokyo's Nikkei Stock Average entered a bear market, plunged more than 20 percent last week from a five and a half high hit on May 23, but since then, it has been trading in a tight recovered some losses.
Also last week, the U.S. dollar against the yen hit its lowest level since April 4 Bank of Japan launched a burst of intense stimulation to promote bond market volatility.
 



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