Japanese big manufacturers' business sentiment deteriorated to the lowest level in nearly three years and is expected to worsen in the coming quarter, a closely watched central bank survey showed, heightening pressure on both Prime Minister Shinzo Abe and the Bank of Japan to do more to shore up the ailing economy.
Big firms also cut their capital expenditure plans for the current fiscal year that began Friday, underscoring the challenges the BOJ faces in nudging risk-shy companies into boosting spending through aggressive money printing.
The weak reading may also persuade Abe to delay yet again a sales tax hike scheduled for next year to keep the economy afloat.