Latest news with #NikkeiResearch
Reuters
21-05-2025
- Business
- Reuters
Two-thirds of Japanese firms want BOJ to pause rate hikes amid Trump tariffs, Reuters poll shows
TOKYO, May 22 (Reuters) - Nearly two-thirds of Japanese firms want the Bank of Japan to temporarily pause interest rate hikes as U.S. President Donald Trump's tariff policies raise pressure on earnings, a Reuters poll showed on Thursday. Japan's economy contracted for the first time in a year in the first quarter, underscoring the fragile nature of its recovery now under threat from U.S. trade policies. About 65% of respondents want the BOJ to pause interest rate increases and 10% would like to see rates lowered, while 25% are of the view that the central bank should proceed with rate hikes, the survey showed. "No one knows how negotiations over the Trump tariffs will be settled and what their impact will be. Any rate action should be taken only after visibility has been regained," a manager at a company in the service sector wrote in the survey. An official at an electronics company said the tariffs on Japanese goods, coupled with a firmer yen on the back of higher interest rates, would be a "double whammy" for the nation's all-important export-oriented industries. The survey was conducted by Nikkei Research for Reuters from May 7-16. Nikkei Research reached out to 504 companies and 224 responded on condition of anonymity. On April 2, Trump imposed 10% tariffs on all countries except Canada, Mexico and China, along with higher tariff rates for many big trading partners, including Japan, which faces a 24% tariff rate starting in July unless it can negotiate a deal with the United States. Washington has also imposed 25% levies on cars, steel and aluminium, dealing a huge blow to Japan's economy, which relies heavily on automobile exports to the United States. Among those respondents who want the BOJ to carry on with rate increases, 42% picked the last quarter of 2025 as desirable timing for the next hike, while 36% chose July-September this year. A separate Reuters poll showed last week that most economists expected the BOJ to hold interest rates through September as it pauses to assess the effects of the U.S. tariffs. On U.S. tariffs' earnings impact, 9% of respondents expect a significant negative effect and 54% anticipate a moderate adverse impact, while 34% see little unfavourable effect, the survey showed. No company expected a positive impact. "We expect a drop in exports of cars made in Japan to the United States, and our sales to the auto industry will likely fall as well," a manager at a chemical company said. Asked how they would respond to the tariff-related downside risks to earnings, more than half of respondents said they planned to pass on the added costs to consumers. However, despite the widely anticipated earnings impact of the Trump tariffs, most Japanese companies are determined to stick to their plans to raise wages amid chronic labour shortages. About 83% of respondents intend not to let the new U.S. tariffs affect their wage hike plans, the survey showed. "We need to raise wages regardless of U.S. policies. Otherwise, we cannot obtain human resources," an official at a machinery maker said. Japanese companies have agreed to raise pay by 5.32% this year, the fifth tally of annual labour talk results from the country's largest union umbrella group, Rengo, showed this month, staying on course to deliver the biggest pay hike in 34 years. The Reuters survey also showed nearly half of respondents saw the yen trading between 140-145 yen to the dollar in the current business year to March 2026, while 26% expected the Japanese currency to be weaker at 145 to 150 yen. On Wednesday, the yen was trading around 144 yen to the dollar.
Reuters
20-03-2025
- Business
- Reuters
Most Japan firms stay committed to diversity despite US moves, Reuters survey shows
TOKYO, March 21 (Reuters) - More than three-quarters of Japanese companies have no plan to pull back from promoting workplace diversity and decarbonisation despite recent policy changes in the United States, a Reuters survey showed on Friday. Since taking office in January, U.S. President Donald Trump has issued a series of executive orders aimed at dismantling diversity, equity and inclusion programmes across the federal government and the private sector. Major U.S. companies that have backtracked on their DEI initiatives in recent months include Facebook and Instagram parent Meta Platforms (META.O), opens new tab and Alphabet's Google (GOOGL.O), opens new tab. Japan runs far behind the United States and the other members of the Group of Seven advanced economies in gender equality, a World Economic Forum report published last year showed. Around 77% of survey respondents said they plan to press ahead with their diversity efforts, while 3% are reviewing or considering reviewing their DEI steps. The remaining 20% had no plan to promote diversity in the first place. "DEI is a global trend. We don't see it necessary to change our direction just because one country's president is against it," a manager at a machinery manufacturer wrote in the survey. "It is important to manage a company in a way that is fair to everyone regardless of race or gender." Promoting diversity and inclusion is vital to attract and retain employees as Japan faces a chronic labour shortage due to a shrinking and ageing population, some survey respondents said. The number of foreign workers reached a record 2.05 million in 2023, around 3% of the entire workforce, government data showed, but the figure is still short of what is needed to overcome labour shortages due to Japan's ageing population. Asked about the potential impact of the energy policy of President Trump, a climate sceptic and advocate of fossil fuels, about 84% of respondents said they intended to maintain their decarbonisation measures, while 3% said they would slow down such efforts. Japan relies heavily on imported oil and gas for its energy needs, and weaning itself away from fossil fuels is important for its energy security as well as for reducing greenhouse gas emissions. The survey was conducted by Nikkei Research for Reuters from March 5-14. Nikkei Research reached out to 505 companies and 225 responded on condition of anonymity. EARNINGS OUTLOOK On their earnings outlook for the business year starting in April, 36% of respondents expect operating profit to grow from a year earlier, 20% anticipate a year-on-year decline and 44% see their profit moving sideways, the survey showed. Nearly two-thirds of those expecting positive earnings growth cited firmer domestic demand as a contributing factor, while more than half of those foreseeing a slide in profit blamed higher costs for weaker performance. "Costs are on the rise across the board. We cannot pass them all onto selling prices," an official at a food company said. A manager at a transportation equipment maker also pointed to the prospect of higher auto tariffs in the United States and a slowdown in the Chinese economy as a reason for predicting a profit decline. Trump is considering imposing significant tariffs on vehicles and parts made around the world in early April. On expectations for the yen, 77% anticipate it to trade between 140-150 yen to the dollar in the new business year starting next month, while 15% see the Japanese currency to be weaker at 150 to 160 yen, and 7% expect it to trade between 130 and 140 yen, the survey showed.
Yahoo
21-02-2025
- Business
- Yahoo
Japan manufacturers' mood improves for a second consecutive month in February: Reuters poll
By Makiko Yamazaki TOKYO (Reuters) - Business sentiment for Japanese manufacturers climbed for a second straight month in February and is expected to have improved again by May, albeit modestly, the Reuters Tankan poll found. The results follow data this week that showed the economy grew at a faster-than-expected annualised rate of 2.8% in the October-December quarter on gains in business spending and a surprise increase in consumption. The manufacturers' sentiment index for February improved to plus 3 - its highest level since November - from plus 2 in January. It is seen rising to plus 5 in May. The recovery in mood was led by the food and chemicals sectors. "There's been a pause in yen weakness and surges in materials costs, while selling prices have picked up slightly," a manager at a food company wrote in the survey. But some materials industries including paper, pulp and steel saw sentiment deteriorate in February. The Reuters Tankan indexes are calculated by subtracting the percentage of pessimistic respondents from optimistic ones. A negative figure means pessimists outnumber optimists. In the poll's written comments section, managers expressed concern about U.S. President Donald Trump's wide-ranging plans to hike tariffs. "Our clients have turned cautious about capital spending due to worries about potential escalation of Sino-U.S. trade friction, the stagnant Chinese economy and rising inflation," a manager at a machinery firm wrote. The poll was conducted by Nikkei Research for Reuters February 4-14. More than 230 firms responded to this month's poll of 505 big non-financial Japanese companies, which take part on condition of anonymity. The service-sector sentiment index dipped to plus 30 in February from plus 31 in January, with the construction and real estate sectors leading declines. It is expected to stay flat in May. "Rising labour costs are pressuring operating profits," a construction firm manager wrote. "A rise in costs is outpacing price hikes," wrote another. Sign in to access your portfolio
Reuters
18-02-2025
- Business
- Reuters
Japan manufacturers' mood improves for a second consecutive month in February: Reuters poll
Summary Manufacturers sentiment index +3 in February vs +2 in January Index for non-manufacturers' mood dips to +30 from +31 Manufacturers index seen at +5, non-manufacturers at +30 TOKYO, Feb 19 (Reuters) - Business sentiment for Japanese manufacturers climbed for a second straight month in February and is expected to have improved again by May, albeit modestly, the Reuters Tankan poll found. The results follow data this week that showed the economy grew at a faster-than-expected annualised rate of 2.8% in the October-December quarter on gains in business spending and a surprise increase in consumption. The manufacturers' sentiment index for February improved to plus 3 - its highest level since November - from plus 2 in January. It is seen rising to plus 5 in May. The recovery in mood was led by the food and chemicals sectors. "There's been a pause in yen weakness and surges in materials costs, while selling prices have picked up slightly," a manager at a food company wrote in the survey. But some materials industries including paper, pulp and steel saw sentiment deteriorate in February. The Reuters Tankan indexes are calculated by subtracting the percentage of pessimistic respondents from optimistic ones. A negative figure means pessimists outnumber optimists. In the poll's written comments section, managers expressed concern about U.S. President Donald Trump's wide-ranging plans to hike tariffs. "Our clients have turned cautious about capital spending due to worries about potential escalation of Sino-U.S. trade friction, the stagnant Chinese economy and rising inflation," a manager at a machinery firm wrote. The poll was conducted by Nikkei Research for Reuters February 4-14. More than 230 firms responded to this month's poll of 505 big non-financial Japanese companies, which take part on condition of anonymity. The service-sector sentiment index dipped to plus 30 in February from plus 31 in January, with the construction and real estate sectors leading declines. It is expected to stay flat in May. "Rising labour costs are pressuring operating profits," a construction firm manager wrote. "A rise in costs is outpacing price hikes," wrote another.
