Japan’s business mood sours for first time in two years

TOKYO: Japanese business sentiment worsened for the first time in two years in the three months to March, a closely watched central bank survey showed, as rising raw materials and labour costs weigh on an otherwise steady economic recovery.

A strong yen and simmering fears of a trade war, triggered by US President Donald Trump’s move to impose tariffs on Chinese goods, could further undermine corporate morale if threats of retaliation escalate, analysts say.