Japanese Prime Minister Shinzo Abe said that buying foreign bonds will be unnecessary under a new central bank chief, backing away from a policy proposal that may be seen by other nations as an attempt to weaken the yen.
Japan’s finance minister signaled that while his government is ready to sell yen in the market if needed, the country doesn’t intend to return to the long-term, large scale intervention campaigns of the past.
Japan’s large manufacturers said business conditions improved from three months ago, signaling the nation’s export-led recovery is gaining traction even as Europe’s debt woes roil global financial markets.
Toyota Motor Corp. and Honda Motor Co. can thank government aid for helping auto industry sales grow faster in Japan than any major market this year. As state subsidies are about to run out, so may the euphoria.
Confidence among large Japanese manufacturers rose the least since early 2009 in September, and companies forecast that pessimists will outnumber optimists by year-end, as a rising yen threatens the nation’s recovery.
Japan’s economy shrank more than estimated in the first quarter after the March 11 earthquake and tsunami disrupted production and prompted consumers to cut back spending, sending the nation to its third recession in a decade.