Both big manufacturers, services mood down
China economy also denting sentiment
Business confidence is key for BOJ39;s policy outlook path

TOKYO, April 17 Reuters Business confidence at big Japanese manufacturers and services sector firms slid in April from the prior month, dragged down by costofliving pressures and shaky economic conditions in major market China, a Reuters monthly poll showed.

The yen39;s weakening to levels unseen since 1990 during the heyday of the assetinflated bubble is lifting the cost of imports in a blow to household consumption, according to the Reuters Tankan survey.

Moreover, while the fall currency has boosted the value of exports, volume of shipments have not benefited as much, the survey found.

The Reuters Tankan sentiment index for manufacturers stood at plus 9, down from the previous month39;s 10, dragged down by chemicals and food processing.

The services sector index fell to plus 25 from plus 32 in the previous month, despite some gains by retailers. The survey, conducted April 312, found that both sectors39; sentiment indexes improving slightly over the coming three months.

The monthly Reuters Tankan, which closely tracks the Bank of Japan39;s quarterly tankan survey, was conducted during the time the Japanese currency hit its 34year lows to the dollar beyond 153 yen. That has prompted repeated warnings from authorities that they stood ready to take action against speculative or destabilising currency moves. The dollar broke…