Better Job Report Backs Rate Hike In December
Japan’s consumer confidence rose to 42.6 in November
According to the Economic and Social Research Institute, the consumer confidence index for Japan rose by 1.1 points to 42.6 in November against a level of 41.5 in October 2015. The Japan-focused iShares MSCI Japan (EWJ) and WisdomTree Japan Hedged Equity ETF (DXJ) rose 0.57% and 1.2%, respectively, as of December 4.
Consumer perception indexes jump in November
All the categories of the consumer perception indexes recorded an increase from the previous month. Overall livelihood was up 1.3 points to 40.9 from the previous month, whereas income growth rose 1.1 points to 41.1 in November 2015. With the increase in business orders and production levels, employment also rose by 0.8 points to 46.7 from the previous month. Additionally, willingness to buy durable goods rose 1.3 points to 41.6 in November 2015.
Stocks rise with an increase in consumer confidence
The consumer discretionary stocks Honda Motor (HMC) and Toyota Motor (TM) rose 0.52% and 0.95%, respectively, as of December 4. Also, consumer staples stocks Kao Corporation (KCRPY) and Japan Tobacco (JAPAY) rose 0.57% and 0.28%, respectively, over the same period.
Though consumer confidence rose in November, it’s stayed below the neutral level of 50 for a long time. This suggests weak consumer sentiment in Japan about future growth prospects.
However, Japanese manufacturers posted strong numbers in November. Rises in new orders and production levels were seen in November. With new product launches and advertisement, demand was boosted from domestic and foreign customers. Improvement in business orders may help to boost consumer confidence in Japan going ahead.
You may also be interested to read how New Product Launches Boosted Japan’s Manufacturing in November.
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