Smaller business outlook still gloomy in Japan

Bank of Japan's massive easing so far failed to create anything substantially other than asset price inflation (Nikkei and Japanese bonds) and weaker Yen, which is posing considerable doubts in the market over BOJ's real ability to boost economy in absence of fiscal stimulus.

However it should be noteworthy, that economic conditions could have been far worse with sale tax rise from 5% to 8%, without absence of BOJ's monetary stimulus, but while it has stabilized downside, it is struggling to provide upward boost.

 At least Small business confidence seems to be painting such picture.

• Monthly survey by Shoko Chukin Bank survey, whose respondents include 1000 different businesses reported a reading of 49 in September, marginally better than 48.8 in August. Situation is much better than expected as economist predicted 48.3.
• However the reading is below 50 mark, reading above which indicates optimism.

Small companies hasn't gained like the large exporters from weaker Yen and domestic focused SMEs are facing tough time as demand slowed over higher prices thanks to weaker yen and tax hike.