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According to  the monthly Reuters Tankan survey, the sentiment around the Japanese manufacturers turned bearish for the first time since April 2013 in August amid escalating US-China trade war.

Key Findings:

“The monthly poll, which tracks the Bank of Japan’s (BOJ) closely-watched Tankan quarterly survey, found manufacturers’ mood slid for a third straight month to minus 4 in August from the prior month’s plus 3.

It was the weakest sentiment reading since April 2013, when it was minus 4, dragged down by electric machinery, metals, food processors and transport equipment.

Confidence in the service sector also plunged, to plus 13 from plus 25 in July, due to big drops at wholesalers and retailers.

While the Reuters Tankan’s manufacturers’ sentiment index is seen swinging back to plus 3 over the next three months, the service-sector index is expected to remain unchanged at plus 13 in November.”