UPDATE 1-Japan manuf mood dips to levels seen after quake -Reuters Tankan

* Manufacturer sentiment index -11 in Feb, non-manuf +5

* Manufacturer mood in May seen at -4, non-manuf +5

* Reuters poll closely correlated to BOJ tankan

By Tetsushi Kajimoto and Izumi Nakagawa

TOKYO, Feb 23 (Reuters) - Japanese manufacturing sentiment this month slid to its lowest since the aftermath of the earthquake last March, a Reuters poll showed, indicating the world's No.3 economy may struggle to recover quickly from a slump on weak global demand and a strong yen.

The monthly poll, highly correlated with the Bank of Japan's quarterly tankan survey, casts doubt on hopes for a fast rebound after floods in Thailand, the yen's rise and Europe's sovereign debt crisis dealt a blow to corporate morale.

The sentiment index for non-manufacturers, which includes construction, real estate and other firms that could benefit from rebuilding in areas battered by last year's disaster, also edged down, though it stayed positive for the eighth straight month.

Reflecting recent signs of a pick-up in the global economy and the yen's retreat from record-high levels, however, manufacturing mood is expected to improve over the next three months, although it will remain pessimistic.

"I think February marks the bottom of the deterioration in manufaturers' sentiment in Japan," said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance Company.

"Sentiment is expected to improve in March as inventory adjustment in electronic parts will be over, pain from the strong yen will likely ease - though we need to be cautious on forex moves - and full-fledged reconstruction demand is seen emerging."

The manufacturers' sentiment index, derived by subtracting the percentage of pessimistic responses from optimistic ones, fell six points to minus 11, the third consecutive month of negative readings.

That marked the lowest reading since last April when the index dropped by a record amount in the wake of the magnitude 9.0 earthquake and deadly tsunami that triggered the worst nuclear crisis in 25 years and tipped the economy into a recession.

Although the economy rebounded in July-September led by post-disaster reconstruction demand, it shrank a bigger-than-expected 0.6 percent in the fourth quarter, as Thai floods, the stubbornly strong yen and weak demand hurt exports.

The manufacturing index is seen improving to minus 4 in three months, according to the poll of 400 big firms, of which 248 responded in the Feb.3-20 survey period.

The index for non-manufacturers fell one point to plus 5, and is expected to stay flat in May, underpinned by reconstruction-related demand.

"Demand for industrial machinery has hit an adjustment phase as Europe and emerging economies remain stagnant and a strong yen has been taking root," one steel maker said in the poll.

"We are suffering from the persistent effects of a big drop in demand for semiconductors, the yen's historical strength and uncertainty over the global economic outlook," said a manufacturing firm.

The indexes for steel/nonferrous metals and electric machinery sectors stood at -22 and -29 respectively, the lowest levels since the aftermath of the Lehman shock in 2008, with companies grappling with high commodity costs and sluggish demand for electronics goods.

The BOJ's closely-watched tankan in December showed big Japanese manufacturers turned pessimistic in the final quarter of 2011.

The central bank last week boosted asset purchases and set an inflation goal of 1 percent, pledging to maintain ultra-easy policy until that price level is in sight in a sign of a more aggressive policy to pull an ailing economy out of deflation.

The central bank's surprise easing helped send the yen to multi-month lows against most other major currencies, as it encouraged speculators to crank yen-selling into high gear. The dollar hovered at around 79.75 yen, not far from a 6-1/2 month high of 79.89 yen marked on Monday.

Analysts polled by Reuters expect Japan's economy to recover gradually in 2012 as delayed reconstruction efforts after the March 2011 disaster finally gather momentum.