Japanese manufacturers grow cautious on business outlook — Reuters poll

Business sentiment among Japanese manufacturers improved in April, climbing to +9 from -1 in March, Reuters Tankan survey data showed. However, despite the short-term improvement, entrepreneurs forecast the index to fall to zero in the next three months.

According to Reuters, increased US protectionist measures are significantly affecting export-oriented sectors of the nation's economy. The situation is particularly alarming in the automotive industry and precision engineering, which have been suffering from a sharp decline in orders since the end of February. CEOs in these industries are expressing extreme uncertainty in assessing the consequences of new trade restrictions.

Additional pressure is coming from China's economic slowdown. Reuters notes that weaker consumer demand in China provokes redirection of cheap products to the Japanese market, intensifying competition with local producers.