March Japanese manufacturing diffusion index of 21 months, the highest since.

<P> Reuters survey showed Japanese firms view the economic situation has gradually improved, manufacturers expect the diffusion index in June to close positive. .</ P> <P> survey in March in Japan Reuters Tankan diffusion index for the manufacturing sector increased by over 19 points in December to -8, rose to the highest since June 2008, thanks to the stability of Asia, Japan .exports. .June the index expected to rise further seven points to -1. March non-manufacturing diffusion index is negative 22,12 39 months is negative, and services enterprises has lagged behind compared with the manufacturers, their confidence for 2008 .In November, the strongest since. .</ P> <P> However, the profit squeeze because of deflation in Japan, and the global financial crisis, domestic demand in Japan is difficult to accelerated promotion, business sentiment has been negative to keep the last two years. .</ P> <P> survey, all industries other than motor vehicles confidence turn for the better than three months ago. .An automotive-related manufacturers in the survey, said Toyota is a massive global recall that sales slowed. .Steel, chemical and electrical manufacturer's confidence continued to improve, the survey revealed that they still cautious about the fragile economy. .</ P> <P> manufacturers also said they were stronger against the yen, oil prices, other commodity costs, the global economic uncertainty and concerns about the weak capital spending. .</ P>.