October 1 Brings Key Economic Indicators: BOJ Tankan and US ISM Manufacturing PMI

Financial markets will see key indicators gauging current economic conditions on October 1. In Japan, the BOJ Tankan survey and the summary of opinions from the monetary policy meeting are scheduled to be released at 8:50 a.m.

The market consensus is that the large manufacturers' diffusion index (DI) for the July-September quarter will improve to 25, up from the previous reading of 22. The views of policy board members on the timing of additional rate hikes and inflation outlook are likely to provide trading cues for foreign exchange and government bond markets.

At the same time, data on outward and inward portfolio investment will be released, shedding light on Japanese stocks' trading trends by foreign investors and the stance of Japanese investors toward foreign bond investment. The September Manufacturing PMI will also be announced at 9:30 a.m., with the previous reading at 54.1.

Overseas, the final Eurozone Manufacturing PMI for September is expected to be released at 5:00 p.m., likely at a similar level to the flash estimate of 52.7. The Eurozone unemployment rate for August will also be published at 6:00 p.m., with a market forecast of 6.4%, unchanged from the previous month.

In the United States, initial jobless claims for the prior week are expected to be released at 9:30 p.m., and the September ISM Manufacturing PMI will be announced at 11:00 p.m. The market consensus is for a slight improvement in the manufacturing sentiment, above the threshold of 50.