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REPEAT: MNI 5 THINGS: Japan Apr Sentiment Up on Weather

--Japan Apr Economy Watchers Current Index 49.0; Mar 48.9
--Japan Apr Watchers Outlook Index 50.1; Mar 49.6, 1st Rise in 6 Mths
--Govt Official: Stock, Yen, Trade Concerns Have Receded
--Govt Keeps View: Moderate Economic Recovery Continues
--Govt: Concerns Over Labor Shortages, Rising Costs Remain
By Max Sato
     TOKYO (MNI) - Mild weather in April, a projected hot summer and calmer
financial markets supported the current and outlook sentiment but the rising
cost of living is feared to dampen consumption, a key government survey
conducted from April 25 to April 31 and released Thursday showed.
     * The Economy Watchers Survey sentiment index for Japan's current economic
climate edged up by 0.1 point 49.0 in April on a seasonally adjusted basis after
rising 0.3 point to 48.9 in March. It was the second straight month-on-month
rise in confidence but the index stayed below the key level of 50 for the fourth
consecutive month.
     * The Economy Watchers outlook index showed sentiment about the situation
two to three months ahead marked the first month-on-month increase, rising 0.5
point to 50.1 in April after falling 1.8 points to 49.6 in March.
     * "Higher temperatures and fine weather in April supported sales of soft
drinks and takeout food as well as spring clothing," Shigeru Hirota, Cabinet
Office director of regional economies, told reporters. "The concerns seen in
March about volatile stock prices and the appreciation of the yen have clearly
receded."
     "The employment sentiment index fell as smaller firms found it hard to
secure workers but the (improving) employment conditions have not changed."
     * " As for the outlook, hot summer weather is forecast for the coming
month, propping up the sentiment among retailers. But at the same time,
restaurants are worried that the rising costs of daily necessities will hurt
consumer spending, while there are expectations for a rise in summer bonuses,"
Hirota said, adding that department stores continue to expect robust spending by
wealthy consumers and visitors from overseas.
     * The Cabinet Office maintained its overall economic assessment based on
the Economy Watchers Survey, saying, "The gradual recovery trend continues."
     "Looking ahead, there remain expectations for orders and business
investment, although there are concerns over labor shortages and rising costs,"
the Cabinet Office said. It left out its reference to concerns about "overseas
developments" as the wide-spread fears seen in March about the protectionist
sentiment in the U.S. and retaliatory action by China have waned.
--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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