Japan’s upcoming Tankan survey is expected to show steady sentiment, potentially supporting further BoJ policy normalization amid strong retail data.
Japan’s May retail sales surged 5.3% year-on-year, exceeding expectations of 3.0% and marking a sharp rebound from April’s revised 2.8% gain. The data underscores consumer resilience ahead of key industrial production figures due tomorrow, forecast to rise 1.4% month-on-month.
The Bank of Japan’s Tankan survey on Wednesday is the week’s focal point, with economists anticipating broadly stable business sentiment. A steady reading could reinforce expectations for gradual monetary tightening, following the BoJ’s recent shift away from negative rates.
Asian markets showed mixed reactions, with easing Middle East tensions offset by new trade frictions after China imposed stricter export controls on Japanese entities. The yen’s trajectory may hinge on the Tankan’s implications for policy.