'Tankan' highlights gloomy outlook

Japanese businesses anticipate weak demand for products, higher costs for materials

Japanese businesses remain wary over the outlook for the world's No 3 economy and generally plan to reduce capital investment, according to a central bank survey released on Wednesday.

The Bank of Japan's quarterly "tankan" survey will likely reinforce the conviction among many that more stimulus is needed to sustain growth as Japan struggles to escape from more than two decades of stagnation.