Economists: Short-term expectations are likely to show a slight decrease in manufacturing business sentiment.

According to economists surveyed by data provider Quick, the Tankan survey of business sentiment by the Bank of Japan to be released on Wednesday is expected to show a slight deterioration, but largely unaffected by the negative impact of the Middle East conflict. The diffusion index measuring the sentiment of large manufacturers is expected to be positive 16 in the June survey, compared to positive 17 in March. RSM Securities economist Ryosuke Katagi said, "Although the sentiment of companies in the materials industry is considered to have deteriorated due to the surge in resource prices and supply shortages caused by the Iran situation, the sentiment in the processing industry may improve somewhat thanks to strong demand for semiconductors."