Japanese SMEs pessimistic heading into 2016

While Bank of Japan (BOJ) policymakers are more optimistic on economy despite risks from slowdown in China and other emerging markets, increased rates from US Federal Reserve, Japanese small business sector aren't sharing the same enthusiasm.

Since Japan's interest rates were already at record low, Bank of Japan's (BOJ) monetary policy stance has done little to help them out. Some of them, focusing on domestic economy faces increased pressure from weaker Yen, increasing their import cost of commodities, mainly oil. Moreover, overall price has risen in Japan, due to rise in sales tax hurting producers focused to domestic economy.

In December survey of 1000 small business showed confidence is weakest in more than six months. The survey is conducted by Shoko Chukin bank of Japan.

Headline number dropped to 48.3 in December from 49.9 in November and forecast suggests it is likely to dip further into new year. January reading is already predicted to be 48.

Yen however, trading strong today as Dollar is weaker relatively across the board. Currently at 120.9 per Dollar.