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06.10.202623:12:12UTC+00Japan Manufacturers' Confidence Highest Since 2021

The Reuters Tankan index for Japanese manufacturers rose for the third consecutive month in October 2026, edging up to +22 from +21 in September. This marks the highest level since December 2021, supported by robust demand for semiconductors and data centers. Precision machinery, including chipmaking equipment, drove much of the improvement, jumping to +38 from +29 on the back of strong orders. Other sectors also strengthened: metals climbed to +35 from +26, while steel and non-ferrous metals returned to positive territory, rising to +25 from -13. In contrast, sentiment among non-manufacturers deteriorated, slipping to +23 from +29, the weakest reading since November 2024, as firms faced higher costs and the impact of interest rate increases. Over the next three months, manufacturers expect sentiment to improve further to +23, whereas non-manufacturers anticipate a decline to +21.

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