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Thursday, 1st July 2010
In Business In Japan,

Japanese firms optimistic

The level of confidence among Japanese firms has reached a two year high, according to figures from a new survey.

A report from the central bank showed that companies in the country are more optimistic about the health than they have been for two years. The Tankan Survey, which is conducted quarterly, asks more than 11,000 manufacturers how they feel about the state of the business sector.

Those surveyed said they believed this year could see rises in both profit and investments and the level of confidence shown beat forecasts by market analysts.

Japan is going through a transitional period, with a new prime minister - Naoto Kan – recently appointed following the surprise resignation of Yukio Hatoyama a few weeks ago.

Kan used to be Japan's finance minister and has already spoken out about the massive debts which the country is struggling with. The strong yen is also impacting overseas demand for Japanese exports which is in turn hindering the nation's economic recovery.

Written by Kimberley Homer