Japan’s manufacturing sector showing green shoots of encouragement. | Morning Markets

George Bell, Portfolio Manager, looks at the latest Tankan survey from Japan and the cautious optimism seen in the manufacturing sector. Large manufacturers plan to increase capital expenditure by 10.6% in the year ending March 2025. The report was taken ahead of the announcement of the massive stimulus package announced in China which should benefit Japanese manufacturers as a key trading partner. In the US, Federal Reserve Chairman, Jerome Powell, has left the door open to two further 0.25% cuts before year end following the initial 0.5% cut in September.