Business confidence at large manufacturers rose slightly in the three months to December, according to the Bank of Japan's quarterly "tankan" survey released Friday, fueling speculation the central bank's second interest rate hike in about six years could come next month.
The BOJ said business sentiment for large manufacturers rose for three straight quarters to 25 from 24 in September, which is the highest since the index hit 26 in September 2004.
But small and large companies were less confident about the upcoming January-March quarter. Sentiment at large manufacturers dropped to 22 for the quarter, while that for small and midsize companies dipped to 5.