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Story: Business sentiment is becoming more bullish in Japan and China.
Statistics released on Monday showed that sentiment among Japanese service sector companies has reached a high level not seen in more than 30 years.
The Bank of Japan Tankan Index, which is closely watched, recorded +34 for major non-manufacturing industries.
This is the highest amount since the summer of 1991, when Japan was still in the midst of a bubble caused by soaring asset prices.
The rapid increase in the number of tourists is believed to be one of the reasons for the increase in the number of new tourists.
Companies are also enjoying a boost in profits from higher prices.
However, the outlook for manufacturing is less optimistic, with the manufacturing figure dropping to +11 in March.
Still, some believe the Tankan numbers could prompt the central bank to raise rates further.
There were also encouraging numbers for China on Monday.
The country’s business confidence reached an 11-month high in March, and manufacturing activity expanded at its fastest pace in 13 months.
Signs of increasing overseas demand were one of the driving factors.
That’s all according to the latest Purchasing Managers Index.
It also hinted at a brighter start to the year for the Chinese economy, after exports and retail sales exceeded expectations.
Citi analysts have already raised their growth outlook for the country as a result of the results.
However, China still faces headwinds, including disruption to its vast real estate sector.
As a result, many economists expect the Chinese government to need to take further stimulus measures to reach its growth target of around 5% this year.
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