survey for the April-June quarter showed confidence among large manufacturers stood at plus 12, well short of market expectations, after hitting a more than six-year high of plus 17 in the preceding quarter.
Results of the latest quarterly Tankan
survey will be released next Monday.
Pessimism sets in The BOJ's tankan
survey for the April-June quarter showed big manufacturers had turned pessimistic about business conditions for the first time since the global financial crisis, though they expect improvement in the coming months.
Survey revealed that large manufacturers' economic expectations improved for the second consecutive quarter in the three months to September, with the forward-looking Outlook gauge rising to -21, the highest in a year.
The Reuters Tankan
, a monthly poll that tracks the quarterly central bank survey of the same name, showed confidence among big manufacturers - key drivers of growth in Japan - fell to a five-year low this month.
Although the Tankan
is a reliably explosive market mover, the surprise leap to +11 did not produce the sort of rally that many expected.
survey's headline index measuring business sentiment among large manufacturers rose to plus 4 in June from minus 8 three months earlier, better than an average forecast of plus 3 by economists polled by Kyodo News.
clearly showed that the Japanese economy is literally faced with the worst recession in the nation's post-war history,' said Hideki Matsumura, a senior analyst at the Japan Research Institute.
Reflecting the improvement in business sentiment, the September tankan
survey showed the diffusion index of business sentiment among large manufacturers at plus one, turning positive for the first time in two years and nine months.
In April, perhaps influenced by the results of the tankan
Stocks drew support as the Tankan
report released shortly before the opening bell showed business confidence among large Japanese manufacturers sharply improved in June from three months earlier, brokers said.
Index for large manufacturers, however, rose to -48 from -58 in the same period.