The Bank of Japan released key economic data on Thursday morning, highlighting the ongoing rebound across the domestic manufacturing sector. While the Tankan Large Manufacturing Index and Outlook reports both posted significant increases over their Q1 readings, they fell short of market estimates. The Tankan Large Manufacturers Index produced a reading of 14 for Q2, against a consensus estimate of 15. The Tankan Large Manufacturers Outlook posted a larger miss, coming in at 13 vs. an expected reading of 18. Despite missing expectations, the readings reflect significant improvements from the prior readings in Q1. Despite a strong capex reading from manufacturers, markets may gyrate as they process this mixed bag of results along with the state of the Japanese recovery.
