Services Sentiment Soars in Japan While Manufacturers Sour on Growth Outlook

Sentiment for Japan's services sector climbed to 33-year high in Q1 on tourism boom and rising profits from price hikes, leaving scope for more BOJ rate hikes
Big manufacturers' sentiment soured for first time in 4 quarters due to auto output disruptions, highlighting fragile recovery
Companies expect capital expenditure to rise 4.0% in new fiscal year, after 11.5% rise last year
Tight labor market driving wage hike expectations, with companies seeing inflation above 2% target over next 1-5 years
Economic outlook uncertain due to global conditions and yen depreciation, but tankan results support case for another BOJ rate hike