A majority of Japanese chief executives think that the worst of the economic downturn is now in the past, with growing numbers optimistic about the prospects of the foreseeable future.

According to a poll of business leaders carried out by the Nikkei business daily newspaper, around half of the presidents and chairman of the 137 major companies polled expressed a belief that Japan's economy had improved over the past six months, AFP reported.

This compares with the results of the previous study, carried out in March, which saw less than one per cent of the businessmen questioned express such optimism.

At the same time, 63 per cent of business leaders felt the domestic economy will hold steady over the immediate future, with just 27 per cent fearing the situation will worsen.

These latest findings come ahead of the Bank of Japan's forthcoming publication of its latest Takan survey of business confidence, which is set to be taken as a key indicator over what direction key areas of business will take over the short-to-medium-term future.