Japanese business confidence plummets to six-year low

Confidence at major Japanese manufacturers marked its sharpest drop in 34 years, a key central bank survey showed yesterday, further evidence that the world's second-largest economy may be headed for a deep recession as companies brace for more global turbulence.

The Bank of Japan's "tankan" quarterly survey for December showed its closely watched confidence index for large manufacturers at minus 24 - the steepest fall since February 1975. That figure is the lowest level since March 2002, when the index hit minus 38.

Japan Inc has grown increasingly pessimistic in the last three months amid slumping global demand, with major exporters including Sony Corp and Toyota Motor Corp slashing production, jobs and profit expectations. The yen's surge to a 13-year high on Friday only adds to the pain by eroding exporters' overseas earnings.