On Tuesday, the Japan’s statistical bureau released the household spending data. It could be seen that the spending increased from -5.1 percent to become 0.7% year – on – year in July. 

That increase is quite weak because it is still under the rising expectation of 2.9%. On a monthly basis, Japanese household spending declined by 0.9 percent so far 

That was the disappointing expectations of a 1.1 percent increase. This bad result is largely due to the resurgence of the Delta coronavirus variant that led the government to impose tightening.

It is especially in Tokyo and the surrounding region to handle the spread. In fact, a recent report mentioned that restrictions have covered about 80 percent of Japan's population.

The Primary Sector doesn’t Grow

Most Japanese consumers have so far delayed their spending on non-primary necessities. The examples are like the travel, accommodation, beauty services, and electronics. 

Meanwhile, the primary sector showed no meaningful growth in the market. That was reflecting the fragility of japan's economy in the third quarter of this year.

The recreation service is still in it’s weakening trend in line with the worse coronavirus cases in Tokyo and the cities near there. Before, they are the areas which move the Japan’s economic. 

Some people predicted that in a short term period there will be a pull action between the COVID-19 cases with the vaccinations effort. That will make the spending is unstable enough.

The August Spending Data can be Slipped too 

Takumi Tsunoda as a senior analyst in the Shinkin Central Bank Research Institute said that the Household spending data in August can be slipped. It is especially if the COVID-19 cases are still high. 

On the other hand, the July real wage data was also published by the Japan Bureau of Statistics morning. The numbers increased by 1.0 percent from a year earlier (Year-over-Year). 

This increase is quite positive because it is much higher than the previous month's achievement which only rose 0.1 percent. That is also better than the forecast of an increase of 0.8 percent. 

Elsewhere, the Japan’s Household spending this morning did not have any high impact to the Yen movement. The USD/JPY pair is now around the level of 109.76 or 0.04% weaker from the daily open price. 

The China’s Export Increase

On Tuesday, the China’s National Statistic Bureau published the Export data which was raising by 25.6% year – over – year on August. This number broke the economist expectation. 

It is because they predicted that the growth will be slowing down to become 17.1% after the 19.3% increase on July. The good China export data this morning reflects the strong fundamental situation there. 

It is especially when the economy is still shadowing by the concern about the delta variant. Strong global demand has continued to underpin China's export growth in recent months.

That was including the shipments to South Korea, which saw a significant increase last month. In addition, the problem of congestion at the port seems to have been resolve.

The Import is also Increase

That recovery is important to facilitate the delivery of goods to abroad. Previously, the world's second largest port located on the east coast experienced severe congestion.

That was as a result of a two-week operational closure, affected by the Corona Delta virus. The returning port underpinned a surge in Chinese exports in August that unexpectedly broke economists' expectations.

In a separate release, Chinese imports also experienced a significant increase. Unmitigated, the imports increased from 28.1% to 33.1% on an annual basis in August. 

This is better than the forecast of economists who expect growth to slow to 26.8%. China's impressive export-import data had a direct impact on trade balance data.