Japan's Ministry of Finance and the Cabinet Office released its quarterly survey on late Thursday evening. The business survey index (BSI) of manufacturers' sentiment dropped to -7.9 in first quarter from 3.8 in fourth quarter, missing expectations for a rise to 4.2.
The BSI for non-manufacturing slid to -0.7 in the first quarter from 5 in the fourth quarter.
The BSI for all industries was down to -3.2 in the first quarter from 4.6 in the fourth quarter.
The BSI for manufacturers in the second quarter of 2016 is expected to rise to -3.5, while the BSI for non-manufacturing is expected to decrease to -1.5.