Japan corporate sentiment weakens amid oil woes

Business sentiment among leading Japanese companies weakened for the first time in four quarters amid worries that high oil prices may cut earnings although the government and economists believe this may just be a blip, saying that the world’s second-largest economy will continue recovering.

‘Uncertainty over the prospect of crude oil prices was the primary reason for the downturn in business sentiment in the latest survey, but we do not think that this suggests a deterioration in the overall economy,’ said an official at the Ministry of Finance which made the quarterly survey jointly with the Cabinet Office.

Forbes