Japan JPY

Japan Leading Composite Index Final

Impact:
Low
Source: Cabinet Office, Japan

Latest Release:

Date:
Surprise:
0.3
Actual:
106.5
Forecast: 106.2
Previous/Revision:
106
Period: Jun
What Does It Measure?
The Japan Leading Composite Index Final measures the future economic activity in Japan by aggregating various leading indicators to give insights into expected growth trends. This index focuses on key components such as consumer sentiment, new orders, stock market performance, and employment metrics, helping to predict overall economic health.
Frequency
The Japan Leading Composite Index Final is released monthly, with a typical publication date scheduled for approximately the fifth business day of the month, often as a revised or finalized figure following preliminary estimates.
Why Do Traders Care?
Traders closely monitor the Japan Leading Composite Index Final because it provides valuable insights into the economic outlook of Japan, influencing market perceptions and investment decisions. A stronger-than-expected reading tends to be bullish for the Japanese yen and equities, while weaker data may lead to bearish sentiments surrounding both currency and stocks.
What Is It Derived From?
The index is calculated using a range of leading economic indicators, produced through surveys of business executives, consumer sentiment indices, and various economic metrics. Each component is weighted to reflect its significance in predicting future economic performance, following established industry standards.
Description
The Leading Composite Index is critical for assessing potential economic growth trends within Japan, acting as a leading indicator that forecasts future economic activity rather than reflecting the current economic state. The index combines various forward-looking data points to give a holistic view of expectations for business activity and consumer behavior in the near future.
Additional Notes
As a leading economic indicator, the Japan Leading Composite Index Final may often predict broader economic trends, influencing policymaking and investment strategies in conjunction with other related indices such as the coincident index. It is essential for understanding Japan's position relative to global economic conditions and may inform comparisons with other nations' leading indicators.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for JPY, Bullish for Stocks. Lower than expected: Bearish for JPY, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Aug 24, 2015
106.5
 106.2
106
 0.3
Jul 21, 2015
106.2
 106.2
106.4
Jun 19, 2015
106.4
 107.2
105.2
 -0.8
May 20, 2015
106
 105.5
105.3
 0.5