Japan Tankan Deteriorates for First Time Since Crisis

Confidence among Japan’s largest manufacturers worsened for the first time since the end of the financial crisis last year after a stronger yen eroded export gains and the effect of government stimulus measures faded.

The quarterly Tankan index of sentiment at large manufacturers dropped to 5 in December from 8 in September, the Bank of Japan said in Tokyo. A positive number means optimists outnumber pessimists. Sentiment is expected to fall to minus 2 in March, and companies submitted the strongest forecast for the yen since data began in 1996, the data also showed.