Japanese Businesses Plan More Investment Even as Sentiment Slips

Japan’s large companies plan to increase investment this year, even as a stronger yen may be undercutting their confidence, which slipped a little from the highest level in more than a decade.

Despite a stronger yen, which cuts into profits, large companies said they plan to increase capital spending more than economists forecast. The yen was the second-biggest gainer among major currencies in the first quarter and its continued appreciation could damp pay raises this year, hurting the Bank of Japan’s efforts to end deflation.