Japan’s Manufacturer Mood Improves, Supporting BOJ’s Rate Stance

Japan’s large manufacturers showed greater confidence in the state of business conditions for a fourth straight quarter even as the Middle East crisis erupted, an outcome that supports the Bank of Japan’s policy stance of continuing to raise interest rates.

The business sentiment index advanced in March to 17 from a revised 16 in the previous quarter, the BOJ’s Tankan business survey showed Wednesday. The result beat the median economist forecast of 16 in a Bloomberg survey.