ACCORDING to a survey released by the Bank of Japan's Tankan, the confidence among large Japanese manufacturers rose in March for the first time in three quarters amid a global economic recovery and the yen's fall showing that the index for the quarterly survey climbed 4 points from December to minus 8.

Large manufacturers expected the index to rise to minus 1 in the next quarter, the survey found. A negative number indicates pessimists outnumber optimists. Improvement of sentiment among exporters such as carmakers contributed to the increase. The yen has fallen about 14 per cent against the US dollar since December with the central bank's monetary easing. A weaker yen makes Japanese goods more competitive overseas and improves repatriated earnings. The survey also showed the index of large non-manufacturers' sentiment climbed to plus 6 from plus 4.

Confidence among medium-sized manufacturers in the world's third-largest economy fell to minus 14 from minus 12 while the index for small manufacturers slipped to minus 19 from minus 18.Large companies in the manufacturing and non manufacturing sectors plan to lower capital investment by 2 per cent during the current financial year ending March 2014, the survey showed.