Weaker Japan manufacturing sentiment intensifies talk of monetary easing

Tokyo

BUSINESS sentiment among major Japanese manufacturing firms deteriorated in September from its level three months earlier, the Bank of Japan's (BOJ) latest Tankan survey showed on Thursday, prompting increased speculation that the BOJ will launch a further round of monetary easing before the end of this month.

That prospect, along with the release of surveys suggesting that falls in China's manufacturing activity may have bottomed out, pushed Tokyo stock prices higher for a second consecutive day, reversing some of the sharp losses earlier this week. The Nikkei 225 average gained 1.9 per cent to 17,722.42