— This is the script of CNBC's news report for China's CCTV on April 1, Tuesday.
Welcome to the CNBC Business Daily.
Japanese stocks under pressure today after the Bank of Japan released its quarterly tankan survey.
The numbers showing that companies are not feeling all too confident about the economy.
The country's sales hike is also expected to undermine recovery as it takes effect today... rising from 5 percent to 8 percent.
The money added to government coffers is expected to be used to pay for a growing social welfare bill, as well as to pay down the country's debt.
But many analysts are showing mixed reactions about Japan's ability to handle this increase.
[Nicholas Weindling, Portfolio Manager at JP Morgan Asset Management] "For us the key to Abenomics is inflation. Deflation has been poisonous in this economy, the fact is that people expect prices to always go down and delay every purchase decision. That's the number one thing we're focused on and that takes time to change, to change that expectation."
[Martin Schulz, Senior Economist at Fujitsu Research Institute] "All the big ticket items have already been bought by the household in December and January and February and now we see the last minute spending in the march data perhaps coming in."
The big problem will be in the summer, we won't really have an engine of growth this year 07 52 37 export demand not so strong, the US is doing well but asia not so much, so domestically what can come? this is where the BOJ will probably have to double up during the summer.
Sri Jegarajah, reporting from CNBC's Asian headquarters.