A number of factors have been pointed out as the background to these developments, including (1) abating tensions in the global financial markets due to a settling down of the European sovereign debt crisis for the time being and the reduced threat of the fiscal cliff; (2) expectations for the outlook for the U.S. and Chinese economies; and (3) the widening of Japan’s trade balance deficit and a sharp fall in the current account surplus.
Rising  4  BIS central bankers’ speeches  expectations in regard to the policy conduct of the government and the Bank of Japan are also a large factor. In these circumstances, business and household sentiment has improved significantly. As overseas economies recover, Japan’s economy is expected to return to a solid recovery path as well.