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TOKYO, Oct. 2 (Xinhua) -- Large Japanese manufacturers' business sentiment in September improved to the highest level in a decade over the weaker yen and robust global demand for electronic parts and automobiles, a survey of the Bank of Japan (BOJ) showed Monday.

In the central bank's quarterly Tankan survey, the index reflecting confidence among large manufacturers rose to plus 22, up 5 points from the June survey, while that for large non-manufacturers remained plus 23, unchanged from the previous quarter.

Manufacturers exposed to overseas markets cited the yen's protracted depreciation as favorable to profit outlooks as a weaker yen generally supports exporters by making domestic-made products cheaper abroad and inflating the value of overseas revenue in yen terms.

The bank said expectations were for the dollar to trade at an average of 109.29 yen this fiscal year compared with the 108.31 yen pegged in the survey three months ago.

Meanwhile, firms were cautious on future business conditions over the upcoming general election in Japan as well as renewed geopolitical concerns.

The index reflecting the employment situation of companies was minus 28, three points lower than the minus 25 in the June survey, reflecting the worst labor shortage since 1992.

The BOJ surveyed a total of 10,687 companies from Aug. 29 to Sept. 29, and 99.4 percent of the companies responded.

The BOJ's quarterly Tankan survey is regarded by economists as Japan's most closely watched gauge of business sentiment.