Japan JPY

Japan Tankan Large All Industry Capex

Impact:
Low
Source: Bank of Japan

Latest Release:

Date:
Surprise:
0.6%
Actual:
12.6%
Forecast: 12%
Previous/Revision:
12.5%
Period: Q4

Next Release:

Date:
Period: Q1
What Does It Measure?
The Japan Tankan Large All Industry Capex measures the capital expenditure planned by large businesses across all sectors in Japan, providing insights into corporate investment behavior. This indicator specifically focuses on the anticipated spending on physical assets such as machinery and equipment, serving as a key gauge of business sentiment and overall economic health.
Frequency
The report is released quarterly, typically around the second week of January, April, July, and October, presenting both preliminary estimates and final figures following revisions.
Why Do Traders Care?
Traders monitor this indicator closely as it reflects business confidence and investment trends, which significantly influence currency and stock market performance. Higher-than-expected capital expenditure is generally seen as a bullish sign for the Japanese yen (JPY) and Japanese equities, while lower figures may exert bearish pressure on both.
What Is It Derived From?
The Tankan survey is derived from a compilation of responses from thousands of large businesses operating in Japan, where they report their current and expected capital spending plans. The data is gathered using a diffusion index approach, allowing for a comprehensive overview of business sentiment and confidence levels.
Description
The preliminary reports reflect early estimates based on initial business responses and are subject to revision, while final reports provide the more accurate spending figures following further data collection and assessment. This indicator usually employs a quarter-over-quarter (QoQ) comparison to focus on medium-term investment trends, allowing traders to discern shifts in business cycles.
Additional Notes
The Tankan Capex serves as a leading indicator of future economic activity, as increased capital spending often foreshadows growth in production and employment. Its results are closely watched not only within Japan but also in relation to global economic dynamics, influencing perceptions of Japan's economic position.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for JPY, Bullish for Stocks. Lower than expected: Bearish for JPY, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
12.6%
12%
12.5%
0.6%
12.5%
5%
11.5%
7.5%
11.5%
3.4%
3.1%
8.1%
3.1%
11%
11.3%
-7.9%
11.3%
9.6%
10.6%
1.7%
10.6%
11.9%
11.1%
-1.3%
11.1%
5%
4%
6.1%
4%
9.2%
13.5%
-5.2%
13.5%
12.4%
13.6%
1.1%
13.6%
13.6%
13.4%
13.4%
10.1%
3.2%
3.3%
3.2%
18%
19.2%
-14.8%
19.2%
23%
21.5%
-3.8%
21.5%
3%
18.6%
18.5%
18.6%
1.1%
2.2%
17.5%
2.2%
7.9%
9.3%
-5.7%
9.3%
9.8%
10.1%
-0.5%
10.1%
9.1%
9.6%
1%
9.6%
7.2%
3%
2.4%
3%
1.4%
-1.2%
1.6%
-1.2%
-0.1%
1.4%
-1.1%
1.4%
1.3%
3.2%
0.1%
3.2%
2.1%
1.8%
1.1%
1.8%
-1.1%
6.8%
2.9%
6.8%
6%
6.6%
0.8%
6.6%
7%
7.4%
-0.4%
7.4%
8.9%
1.2%
-1.5%
1.2%
14.3%
14.3%
12.7%
13.4%
1.6%
13.4%
14.2%
13.6%
-0.8%
13.6%
9.3%
2.3%
4.3%
2.3%
0.6%
7.4%
1.7%
7.4%
7.5%
7.7%
-0.1%
7.7
8.3
8
-0.6
8
7.4
0.6
0.6
0.6
-0.1
5.5
0.7
5.5%
6.1%
6.3%
-0.6%
6.3%
6.8%
6.2%
-0.5%
6.2%
5.9%
-0.9%
0.3%
-0.9%
-0.7%
10.8%
-0.2%
10.8%
10.2%
10.9%
0.6%
10.9%
8.7%
9.3%
2.2%
9.3%
5.2%
-1.2%
4.1%
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