Reuters monthly poll of Japanese firms taken August 31 - September 9:
- three quarters of Japan firms concerned about Taiwan crisis; slim majority have no plan to respond
- 58% of Japan firms see Taiwan crisis to affect their business relations with china
- only 13% of Japanese firms expect yen at 141 or more vs dollar by year-end
- majority cannot see inbound tourism recover; 20% see no return of demand to pre-pandemic levels
Further on the yen:
- Asked how they expected the yen to move against the dollar by year-end, 45% of firms - the biggest chunk - pegged it at 136-140,
- followed by 28% at 131-135
- Some 11% put it at 126-130
- 3% set it at 120-125
- Only 13% saw it weakening further from 141, meaning many firms could be put on the back foot if the currency were to weaken again. Separately, a slim majority of respondents want the yen to rise moderately while 28% want it to fall modestly.
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Larger Japanese firms, collectively Japan Inc. do have the ear of the government - they'll be making their views on the appropriate JPY level well known.
