Group 1 - The business sentiment index for large enterprises in Japan has turned pessimistic for the first time in over a year, dropping to -1.9, indicating more companies perceive a worsening business environment than those that see improvement [1][3] - The manufacturing sector's index plummeted to -4.8, marking a five-quarter low, with significant declines in the automotive, parts, and steel industries [3] - The non-manufacturing index reported at -0.5, the first negative value since Q3 2022, primarily dragged down by the retail and communications sectors [3] Group 2 - The latest data highlights increasing concerns among Japanese companies regarding the uncertainty of U.S. trade policies, particularly following Trump's tariff increases [3] - The automotive manufacturers and parts suppliers' index fell sharply from 8.8 to -16.1, while the steel industry index dropped from 0 to -29.1, reflecting the direct impact of U.S. tariffs [3] - Despite the Bank of Japan's governor reiterating intentions to raise interest rates when conditions allow, the dismal data may lead to more cautious policy deliberations [3]