TOKYO (Reuters) – Japanese business morale improved slightly in the three months to March, the Bank of Japan’s closely watched tankan survey showed, but the devastating earthquake earlier this month and a subsequent nuclear crisis are seen hurting confidence in coming months.
Most of the replies came in before the magnitude 9.0 earthquake on March 11, which means the impact on business sentiment is not significantly reflected in the survey.
The BOJ will therefore release reference data for pre-quake and post-quake sentiment at 8:50 a.m. on Monday (2350 GMT Sunday).
KEY POINTS:
– The headline index for big manufacturers’ sentiment came in at plus 6 in March, up from plus 5 in December and compared with the median estimate of plus 7.
– The index for June 2011 was seen at plus 2, showing that firms expect conditions to worsen.
– Big firms plan to cut capital spending, a key driver of the economy, by 0.4
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