The BOJ's tankan
showed earlier this month that big manufacturers' mood soured for a second straight quarter in the three months to June, hurt by rising input costs and as U.S.
survey came a day after government data showed that Japan's factory output rose a smaller-than-expected 0.5 per cent in May from a month earlier.
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.
Although the Tankan
is a reliably explosive market mover, the surprise leap to +11 did not produce the sort of rally that many expected.
The stock market's downturn amid the yen's upturn over the past month may exert no major impact on the June Tankan
survey, said Mitsubishi UFJ Morgan Stanley Securities Co.
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.
dollar held firm above 99 yen Monday morning in Tokyo, as the Bank of Japan's Tankan
survey showed improved business sentiment in Japan, stirring market players' risk appetite.
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.
24 Kyodo The Bank of Japan (BOJ) said Thursday it will revise the sampling formula for its Tankan
quarterly survey of business sentiment, starting with the next survey to be conducted in March 1999.
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.