Positive Data Buoys Up Japanese Factory Sector's Confidence

Japanese manufacturers confidence rating rallied this month reaching the record level high in April and it is anticipated to further increase in succeeding months indicating according to the poll of Reuters. This is an indicator of economic recovery.

The mood of service industry also surged to a two-year high implication of improving confidence even though it is contradicting to the survey of Reuters Tankan which described credence to be declining in the next three months.

Most indicators and business activity indicated positive data on exports and factory production but the wage growth and household expenditure have slow growth amid tightening job market.

This prompted the central bank to keep its monetary policy unchanged on Friday while the private consumption increased for the first time within six months as the economy gains momentum particularly exports.