20.04.201800:24:00UTC+00Japan’s Manufacturers’ Mood Worsens in April - Reuters Tankan

Morale among Japanese manufacturers worsened for a third consecutive month in April to a level unseen since early last year, the Reuters Tankan poll showed, as rises in the yen and crude oil prices threaten to support corporate profits.

The monthly poll, which tracks the Bank of Japan's (BOJ) closely watched tankan quarterly survey, found manufacturers' confidence was expected to improve a little over the next three months, although fears of a global trade war dim the outlook.

Trade tensions could hit Japan's export-reliant economy hard which could lead to financial market turmoil that would cause an unwelcome spike in the safe-haven yen.

In the Reuters poll of 542 large- and mid-sized companies, in which 253 firms responded on condition of anonymity, many complained about a profit squeeze caused by the strong yen and rising raw materials costs.

The Reuters Tankan sentiment index for manufacturers was at 21, down seven points from the previous month, weighed down by industries such as oil refiners, makers of chemicals, and exporters of cars and electric machinery.

The survey conducted over April 4-17 found the index was expected to improve to 23 in July.

The service-sector index increased to 36, up one point from March and matching a record high last seen in June 2015, led by retailers, suggesting a pick-up in private consumption that makes up about 60 percent of the economy.

The index is expected to fall slightly to 35 in July.