MNI DATA BRIEF: Lockdown Extension In Tokyo Shadows June Sentiment Uptick

A June increase in three months for Japan's sentiment index released by the Cabinet Office Thursday could prove short-lived as the government extended Tokyo's fourth state of emergency to Aug. 22 to curb a surge in COVID-19 cases to Aug. 22.

The Economy Watchers sentiment index for the current economic climate rose a seasonally adjusted 9.5 points to 47.6 in June from 38.1 in May. Earlier Thursday, the Bank of Japan released a more upbeat sentiment survey on Japan household sentiment.

"The situation remained severe but the economy is recovering. Looking ahead, there is concern over infections but there is hope for an economy to continue to recover due to vaccinations," it said. The outlook index for two to three months ahead rose 4.8 points to 52.4 from 47.6 in May, for the second straight rise.

The survey was conducted by the Cabinet Office between June 25 and June 30 after the government decided to extend the emergency and targeted roughly 2,000 people, including store managers and taxi drivers.