In its December economic assessment, the Japanese government upgraded the overall economic assessment for the first time in 17 months, per Reuters.

Key takeaways

Japan raises view on private consumption for the second straight month as service spending recovers, car sales rebound.

Japan raises views on business conditions, employment; cuts views on capex, housing construction.

"The economy is picking up as severe conditions due to the coronavirus are gradually easing.”

“But the government said it was necessary to "closely monitor" any risk from coronavirus variants such as Omicron on economies and financial markets.”

Market reaction

The Japanese yen fails to benefit from the upbeat report, as USD/JPY flirts with daily highs of 113.78, up 0.16% on the day.