Nikkei stays low after disappointing business outlook report

<p>The Nikkei 225 has stayed low after yesterday’s disappointing business sentiment survey.</p>

The Nikkei 225 index has stayed low today (October 2nd), following news Japanese business sentiment is failing to improve.

According to the Bank of Japan's Tankan Survey – which measures optimism and pessimism among the largest manufacturing organisations in the country – confidence levels have slipped to -3 in the three months to September.

This is compared to June's -1 reading and puts sentiment in the factory sector in negative territory for the fourth consecutive quarter.

The weak global economy is to blame for this mood, with demand suffering as Japan's major trading partners grapple with their own finances.

Europe and the US are both dealing with deficits, which are hampering orders and profits, while China's slowdown is also having an adverse affect on the world's third-largest economy.

Indeed, even if growth in China did pick up, the ongoing dispute between the Asian superpower and Japan over islands in the East China Sea could see sentiment towards Japanese business turn sour for the longer term.

At close of play this morning, the Nikkei 225 was down 0.1 per cent to an index value of 8786.0 points.

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