Business confidence among people with jobs sensitive to economic conditions in Japan worsened for the second straight month in May, with a sudden plunge in stock prices blurring the outlook for the country's economic recovery, the government said Monday. The diffusion index of sentiment in the nation's current economic situation among so-called "economy watchers," such as taxi drivers and restaurant employees, fell 0.8 point from April to 55.7, the Cabinet Office said in its monthly survey.

Tokyo stocks surged 4.94 percent Monday on the back of a weaker yen and better-than-expected US jobs data. The benchmark Nikkei 225 index, which lost 6.51 percent last week, closed up 636.67 points to 13,514.20, while the Topix index of all first-section issues soared 5.21 percent, or 55.02 points, to 1,111.97. Tokyo's rally was helped by a sharply weakened yen after the US Labor Department said the economy added 175,000 jobs in May. The figure was better than expected, but analysts said it was not enough to prompt the Fed to pull back on its easy-money policies.

Tokyo stocks surged 4.94 percent Monday on the back of a weaker yen and better-than-expected US jobs data. The benchmark Nikkei 225 index, which lost 6.51 percent last week, closed up 636.67 points to 13,514.20, while the Topix index of all first-section issues soared 5.21 percent, or 55.02 points, to 1,111.97. si/hg/ac

Japan's economy expanded faster than previously thought in the first three months of the year, according to fresh data Monday that was likely to boost support for Tokyo's efforts at stoking growth. The Cabinet Office said revised data showed annualised growth came in at 4.1 percent in January-March, up from a preliminary reading of 3.5 percent and well ahead of many other industrialised nations who are struggling to stoke their economies.