Japan's factory mood remains subdued in July


Japan's factories cut output at the fastest rate in two years in May, largely due to adverse effects from China's coronavirus restrictions, such as in Shanghai.

Confidence at Japanese manufacturers in July was subdued, a Reuters poll showed, reflecting pressure from a problematic chip shortage, China's heavy pandemic response and a weak yen that is making imported materials increasingly expensive.

The Reuters Tankan - which closely tracks the Bank of Japan's quarterly tankan survey - showed both manufacturers' and service-sector morale only improving modestly over the next three months.

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