Business sentiment at large companies in the second quarter sharply improved from the previous three months, as the yen's slide triggered hopes of an export rebound and boosted stock prices, a government survey showed Tuesday.

The index, covering firms capitalized at ¥1 billion or more, came to 5.9 in the April to June period, up from 1.0 in the first quarter through March and hitting its highest level since July-September 2011, according to the joint survey by the Finance Ministry and the Cabinet Office.

Confidence at manufacturers jumped to 5.0 from minus 4.6, as Prime Minister Shinzo Abe's economic policies centering on bolder monetary easing and massive fiscal spending sharply drove down the yen, fanning expectations for an export-led recovery and driving up share prices on the Tokyo Stock Exchange.