"There will be a flood of demand right before the sales- tax rise, and a reaction to that after it rises"
- Masahiko Hashimoto, an economist at Daiwa
Japanese Business Survey Index, a measure of sentiment among large manufacturers, rose to a seasonally adjusted annual rate of 2.5 in the third quarter, up from -5.7 in the prior quarter. Analysts had predicted a decline to -6.1. A reading above 0.0 indicates optimism, below indicates pessimism.
"The economy has been losing momentum this quarter, with exports likely to decrease while consumption and capital spending are deteriorating," said Kiichi Murashima, chief economist at Citigroup Global Markets Japan Inc.
"There will be a flood of demand right before the sales- tax rise, and a reaction to that after it rises," said Masahiko Hashimoto, an economist at Daiwa in Tokyo.
The Nikkei 225 Stock Average climbed 1.73 per cent, or 152.58 points, to 8,959.96. The broader Topix Index advanced 1.31 per cent, or 9.56, to 741.82.
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