Jan manufacturers39; sentiment index 6 vs Dec 12
Servicesector index 29 vs previous month 26
Manufacturers39; mood seen flat, servicesector slipping
Reuters Tankan closely correlates with BOJ tankan

TOKYO, Jan 17 Reuters Business morale at big Japanese manufacturers slid in January for the first time in four months and was expected to remain subdued, the Reuters Tankan poll showed, underscoring concerns about weak demand from China and elsewhere.

The monthly poll, which tracks the Bank of Japan39;s BOJ key tankan quarterly survey, found the servicesector mood improving, but it was seen deteriorating slightly over the coming three months, reflecting fragile domestic consumption.

The poll results may dash hopes the Japanese economy, the world39;s thirdlargest, could count on external demand to offset weakness at households amid rising living costs underpinned by stubbornly weakness in the yen currency.

In the Reuters poll of about 500 large and midsized companies, in which 240 firms responded on condition of anonymity, many voiced concerns about uncertainty overseas in countries such as China, Japan39;s largest trade partner.

The Chinese market remains unstable and we cannot foresee a bright future there. As a result our domestic client is taking a waittosee stance, a paperpulp maker company wrote in the survey on condition of anonymity.

A machinery maker manager cited cooling U.S.China relations, China39;s slowdown, the prolonged war in Ukraine and the renewed…