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Japan Busines Sentiment Index Improves; Outlook Weakens

Japan's business survey index of large manufacturers turned positive in the three months ended September, while future situation is expected to weaken, the quarterly survey by the Ministry of Finance and the Cabinet office showed Friday.

The Business Survey Index, or BSI, turned to a positive reading of 11.0 in the three-month period to September from -6.0 in the previous three months.

At the same time, the sentiment is expected to fall to 10.5 in the October to December period and predicts a 7.1 score for the first quarter next year.

As compared to the previous year, sales are forecast to drop 0.3 percent in the second half of the current financial year. In contrast, during the first six months, sales grew 0.8 percent.

Ordinary profits gained 7.0 percent annually in the second half of this year, while it is expected to decline 2.3 percent in the coming six months.

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