Sentiment among Japanese manufacturers could weaken

The BOJ is set to release the results of a quarterly assessment of business conditions in Japan on December 14 at 8:50 a.m. local time (Dec. 13 at 23:50 GMT). 

It is also slated to report its monthly trade data on Dec. 15 at 8:50 a.m. (Dec. 14 23:50 GMT). Imports are seen rising by 27.0%, while exports are likely to surge 19.8% year-over-year in November. By contrast, the nation's imports and exports jumped 53.5% and 25.3%, respectively, in October.

Business confidence of Japanese manufacturers likely weakened amid unyielding cost pressures and a possible global slowdown, according to a Reuters poll of analysts.

The headline manufacturers' sentiment index could fall for a fourth consecutive quarter to 6 in December from 8 in September, as the Bank of Japan survey could reveal. 

Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute, reported that a drop in corporate profits was triggered by the global economic downturn and rising commodity prices. Even a weak yen, which boosted exports, didn’t drive profits.