Japan Business Confidence Rises

Stocks in Tokyo opened higher today on news that Japanese business confidence surged to a 21-month high in September in a strong signal that companies are benefiting from the economy’s recovery from last year’s recession. But companies remain reluctant to translate that optimism into increased investment, symptomatic of the uneven recovery. The Bank of Japan’s quarterly tankan index of large manufacturers’ confidence rose to minus 22 from minus 37 in June. That’s the biggest rise in 12 years and better than the minus 26 forecast by economists polled by Bloomberg News. The survey suggests that while the economy is on the mend, companies are not yet ready to increase investment and hire more workers. The government, concerned that could choke the budding recovery, plans to soon unveil $48 billion worth of pump-priming measures.