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11.08.202623:14:55UTC+00Japan Manufacturers' Mood Highest in 5 Months

The Reuters Tankan index for Japanese manufacturers rose to +18 in August 2026 from +13 in July, reaching its highest level since March, supported by robust semiconductor demand. Semiconductor-related sectors were the main drivers of the improvement in manufacturing sentiment: the chemicals sub-index jumped to +33 from +23, while the metal and machinery index strengthened to +25 from +12. By contrast, the transport equipment index was unchanged at 0, underscoring mixed conditions in the automotive industry.

Sentiment among non-manufacturers also improved, with the index climbing to +28 from +25 on the back of solid domestic consumption. Looking ahead, manufacturers expect conditions to remain generally stable but somewhat softer, with the index projected to ease to +16 in November, indicating a cautious outlook. The non-manufacturers’ index is forecast to hold steady at +28.

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