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"The data are the latest showcase of Japanese companies getting hammered by the strong yen and weakening overseas economic growth"
- Norio Miyagawa, a senior economist at Mizuho Research and Consulting
Japan's largest manufacturers became less optimistic on the outlook of the country's economy amid crisis in Europe and after foreign investment in China slid for the first time since 2009.
The Tankan large manufacturer index of sentiment decreased to minus 4 in December from plus 2 in September, said the Bank of Japan on Thursday.
"The outlook completely hinges on what happens in Europe," said Yoshimasa Maruyama, an economist at Itochu Corp. in Tokyo. "If the debt crisis worsens further and spreads to the U.S., that could spark a recession there too and that would mean a recession for Japan as well."
"The data are the latest showcase of Japanese companies getting hammered by the strong yen and weakening overseas economic growth," said Norio Miyagawa, a senior economist at Mizuho Research and Consulting.