Reuters Tankan Survey: Japan business mood up, points to better BOJ tankan

Reuters released a monthly poll on the Bank of Japan's (BOJ) closely watched quarterly Tankan manufacturing index, which indicated a slight improvement in the central bank's survey due July 3.

Key Points:

Confidence among Japanese manufacturers bounced in June to match a decade-high level recorded in April and is expected to rise for several months

Service-sector mood rose to a two-year high, evidence of broadening confidence

Confidence was seen slipping over the next three months.

In the poll of 526 large- and mid-sized firms, conducted between June 2-15 in which 250 responded, the sentiment index for manufacturers rose to 26 from 24 in May, led by materials firms such as oil refinery/ceramics and textiles/paper.

The index matched April's reading, which was the highest since August 2007, shortly before the global financial crisis. The index was up by one point from three months ago, and it was seen rising further to 29 in September.

The Reuters Tankan service-sector index rose to 33 from 30 in May, led by gains in real estate/construction firms and wholesalers. It was seen slipping to 28 in September. Compared with three months ago, the sentiment index was up seven points.