According to the latest estimates, the sentiment in the manufacturing sector in Japan during the first quarter of the financial year till June.

The latest survey by the Bank of Japan showed that the Japanese economy is showing signs of a recovery. The survey result comes after Japanese manufacturers reported higher than expected performance in May, indicating that the drive by the government of Japan to boost the economy might be working.

Japanese Prime Minister Shinzo Abe has been working to boost the world's third largest economy by bold stimulus package. Abe is working to ensure that the investor sentiment remains intact in the face of weak global economic environment and volatility in the Japanese stock markets. He is aiming to restore annual private investment to the 70 trillion yen in the Japanese economy through bold steps from the government to support recovery in the country.

IMF is expecting the Japanese economy to grow at 1.6 per cent this year. It also said that controlling the country's national debt, which is now the highest among the developed nations and planned doubling of the nation's sales tax to 10 per cent by 2015 are crucial for the country's financial recovery.