• Large Manufacturing Index Q3: 12 (expected is +7, prior was +4)
  • Large Manufacturing Outlook Q3: 11 (expected is +10, prior was +10)
  • Large Non-manufacturing Index Q3: 14 (expected is +14, prior was +12)
  • Large Non-manufacturing Outlook Q3: 15 (expected is +15, prior was +12)
  • Large All-industry Capex: 5.1% (expected 6.0%, prior 5.5%)
  • Small Manufacturing Index Q3: -9 (expected is -12, prior was -14)
  • Small Manufacturing Outlook Q3: -5 (expected is -10, prior was -7)
  • Small Non-manufacturing Index Q3: -1 (expected is -3, prior was -4)
  • Small Non-manufacturing Outlook Q3: -2 (expected is -2, prior was -4)

If there was any doubt that Japanese PM Abe was going to give the go ahead for the April 2014 sales tax hike and the subsequent economic stimulus package these results should lay that to rest. The ‘headline’ diffusion index and outlook for large manufacturers continue to show improvement, that will be enough for Abe.

USD/JPY traded back to overnight highs on the release, but, again, the move is very small. Close to market we have resistance at 98.50 and support around 98.15/20