Japan's Manufacturing Sector Pessimistic Amid Global Slowdown

Japanese manufacturers' sentiment has worsened to its lowest level in over two years, while the service sector has seen an uptick in mood, according to the latest Tankan survey. The survey also showed that corporate inflation expectations hit a fresh high, with firms projecting inflation to stay above the Bank of Japan's 2% target for five years ahead. The data highlights the challenge facing incoming Bank of Japan Governor Kazuo Ueda in deciding when to phase out his predecessor's massive stimulus programme, as slowing global growth could derail the export-reliant recovery.