Japanese big manufacturers' business confidence improved in the second quarter to hit a two-and-half-year high, a central bank survey has shown, a sign solid global demand was helping the economy emerge from the coronavirus pandemic-induced doldrums.
Service-sector sentiment also turned positive for the first time in five quarters, the Bank of Japan's tankan survey showed, indicating that the economic recovery was broadening even as Japan struggles to contain a fresh wave of coronavirus infections.
Companies expect to increase capital expenditure in the year that began in April as profit recovers from last year's slump, offering hope among policymakers who project growth to accelerate in the latter half of this year.