"The Tankan signals business managers think it will take awhile for the economy to regain momentum"
- Hideo Kumano, chief economist at Dai-Ichi Life Research Institute
Japan's largest manufacturers remained pessimistic about the economic outlook in the first quarter, said the Bank of Japan on Monday. The Tankan large manufacturer index of sentiment was unchanged from minus 4 in December.
"The Tankan signals business managers think it will take awhile for the economy to regain momentum," said Hideo Kumano, chief economist at Dai-Ichi Life Research Institute in Tokyo and a former BOJ official.
"They're still concerned about the risk of the yen appreciating again because they've been traumatized by a strong currency."
Japanese stocks rose on Monday.
The Nikkei 225 advanced 0.26%, or 26.31 points, to 10,109.87, while the broader Topix gained 0.20%, or 1.70, to 856.05.
"The U.S. economy is moving toward a recovery, boosting expectations Japan will follow," said Koichi Kurose, chief economist in Tokyo at Resona Bank Ltd. "Investors are buying shares, looking on the bright side of Chinese data."
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