Japan manufacturing sentiment shows sharp improvement

Sentiment among large manufacturers in Japan jumped from a record low of -66 three months ago to -13.2, according to a government survey. A reading below zero indicates more businesses are pessimistic about the outlook, but the sharp reversal suggests the worst recession since World War II is nearing an end.

Japan is the world's second-largest economy, and it is highly dependent upon exports. The steep drop in world demand has hit the economy hard, and the rise in the yen late last year exacerbated an already bad situation. But China's economy appears to be improving and imports into the Asian giant are benefiting its neighbors.

Additionally, the survey is signaling that the Bank of Japan's closely-followed Tankan survey of corporate confidence out on July 1 will also reflect gains in sentiment.