Japan's central bank upgraded its assessment of the economy for the second straight month on Tuesday.
The Bank of Japan in its monthly review offered a slightly more optimistic outlook, saying the the world's second-largest economy has stopped deteriorating. It expected a turnaround in the second half of the fiscal year ending next March.
The central bank added that the outlook for the export-oriented economy largely hinged on a recovery in external demand, which remained weak.
The BOJ also kept rates on hold at 0.1 percent in a widely