Japan business confidence hits decade high: Bank of Japan

[TOKYO] Confidence among Japan's biggest manufacturers has jumped to its highest level in a decade, a key central survey showed Monday, as the world's number three economy picks up pace.

The Bank of Japan's Tankan report - a closely watched quarterly survey of more than 10,000 companies - showed a reading of 22 among major manufacturers in its latest report, the highest since its September 2007 reading when the headline figure sat at 23.

The latest survey handily beat market expectations for a reading of 18.

The report, the broadest indicator of how Japan Inc is faring, marks the difference between the percentage of firms that are upbeat and those that see conditions as unfavourable.

The mood among major manufacturers has now risen for a fourth straight quarter.

The upbeat survey underscores how Japan's prospects have been improving on the back of strong exports, with investments linked to the Tokyo 2020 Olympics also giving the economy a shot in the arm.

The robust Tankan came after a batch of broadly positive economic data on Friday, including better-than-expected factory output, offering up some good news for Prime Minister Shinzo Abe as he faces a national election on Oct 22.

On Monday, the index for non-manufacturers came in at 23, unchanged from the previous Tankan, sitting at its highest level since the final quarter of 2015.

AFP