survey came a day after government data showed that Japan's factory output rose a smaller-than-expected 0.
The favorable Tankan
results helped risk appetite grow temporarily," said Yuji Kameoka, chief foreign exchange strategist at Daiwa Securities Co.
The last time the BOJ tankan
showed big manufacturers in a pessimistic mood was in March 2001 - three months after Japan had entered a recession in the face of the global dot-com technology bust.
Accompanying the major companies' cheerfulness on the current conditions was a note of caution on the short-term outlook--they believe that the sentiment index will be at +8 in the imminent March 2004 Tankan
Confidence tumbled to minus 58 in March from minus 24 the previous quarter in the Tankan
index, which measures the percentage of firms that think business conditions are good minus those that think they are bad.
Business sentiment among automakers, electronics companies and other exporters improved noticeably in the September tankan
, as much of the economic recovery is being led by exports.
In April, perhaps influenced by the results of the tankan
dollar edged up to the mid-99 yen range early Monday in Tokyo after the Bank of Japan's Tankan
survey showed improved business sentiment in the country.
For the most part, the currency has maintained its inverse link to equities, but it will face high event risk overnight as the Bank of Japan's Tankan
report is projected to show mild improvements in business sentiment from Q2, but may also highlight the lingering weakness in the economy.
Service-sector sentiment also hovered near a record low as consumers kept their purse strings tightened, boding ill for the Bank of Japan's closely watched quarterly tankan
survey due on April 1.
The Bank of Japan's Tankan
survey for June will show a sharp rise in business confidence among large Japanese manufacturers, according to a Kyodo News poll of Japanese think tanks.
Index for large manufacturers, however, rose to -48 from -58 in the same period.