"Companies are judging it's not the time to invest because of uncertainties over the global economy"
- Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management
Sentiment among Japanese largest manufacturers is expected to deteriorate in the third quarter, the Bank of Japan's Tankan said Wednesday. The measure of business confidence is expected to decline to -4, from -1 in the second quarter.
"Companies are judging it's not the time to invest because of uncertainties over the global economy," said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management in Tokyo.
"The BOJ should expand its asset purchases this year because they are far from their inflation target and will come under increased pressure from the government to ease further."
The Nikkei 225 Stock Average advanced 0.48 per cent, or 43.17 points, to 8,949.87. The broader Topix Index climbed 0.41 per cent, or 3.05, to 745.59.
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