Business sentiment in Japan takes sharp dive

Tokyo

THE sharp and across-the-board drop in Japanese business sentiment revealed in the latest tankan survey by the Bank of Japan (BOJ) has cast further doubt on the success of Prime Minister Shinzo Abe's brand of economics, and is likely to spur fresh attempts to revive the country's flagging economy with further short-term stimulus.

The latest quarterly survey published on Friday, conducted among more than 10,000 Japanese firms, indicated that sentiment in March had plunged to their lowest in three years, with business firms saying they expect conditions to worsen in the coming months, as exports and domestic demand remain soft.

The unexpectedly-severe fall in sentiment comes at a critical time for Mr Abe, when the ruling parliamentary coalition led by his Liberal Democratic Party (LDP) is looking to achieve a sweeping victory in upper (and possibly the lower) house elec…