The latest TANKAN or Short-term Economic Survey of Enterprises was released by the Bank of Japan (BOJ) today. The survey measures business confidence and has a strong influence over the markets. Analyst and investor expectations had been high given the continued upward momentum in the Nikkei and the broader TOPIX indices. However, there was a slight sell-off on Friday in anticipation of the release and initially the market reacted negatively in early trading on Monday to a TANKAN that failed to meet these high expectations, lowering the Nikkei by over 100 points. Not to be discouraged an overwhelmingly bullish sentiment prevailed and brought the indices sharply upward, although still down for the day. Here's what the TANKAN data represent and what the survey means for the 4th quarter.
The index of “business conditions