The Bank of Japan released its quarterly Tankan business survey on Thursday. The large manufacturers' index declined to 12 in the third quarter from 15 in the second quarter, missing expectations for a fall to 13. Confidence worsened despite record-high profits of companies.
The outlook fell to 10 in the third quarter from 16 in the second quarter.
The large non-manufacturers' index rose 25 in the third quarter from 23 in the previous quarter. It was the highest level since 1991. The outlook decreased to 19 from 21.