Confidence among Japan's biggest manufacturers has slipped after five quarters of rises, a key central bank survey showed Monday as a stronger yen dented exporter sentiment.

The Bank of Japan's Tankan report -- a quarterly survey of about 10,000 companies -- showed a reading of 24 among major manufacturers in its March survey against 26 in the December report.

Confidence fell among chemicals, electrical machinery makers and other exporters as the average predicted yen rate for the business year from April appreciated to 109.66 to the dollar in the latest survey from above 110 yen in December.

The sentiment among iron and steelmakers tumbled to 10 from 19 as the US moved to impose hefty tariffs on steel and aluminium imports.

A strong yen is negative for Japanese exporters as it makes their products less competitive abroad and erodes profits when repatriated.

The latest Tankan, however, hardly made economists pessimistic about the world's third largest economy, with the headline index still close to the highest level in over a decade. Economists argue Japan is on a solid recovery path on the back of a global economic recovery, with investments linked to the Tokyo 2020 Olympics also giving the economy a shot in the arm.

“The yen's appreciation dented corporate confidence temporarily," said UBS economist Takuji Aida.

“But the underlying sentiment is solid, as seen in their plans to accelerate spending on plants and equipment," he said. “Weak stock prices (since February) have not prevented them from stepping up capital spending," he said.