REUTERS TANKAN shows Japan manufacturing confidence rose from 13 in July to 18
in August, the strongest reading since March 2026. Non-manufacturing confidence
gained to 28 from 25, supported by robust domestic consumption. The three‑month
outlook signals a moderation in sentiment. Semiconductor‑related demand is the
main driver: sharp jumps in chemical and metal‑machinery subindices suggest
strength in the semiconductor supply chain is spreading across Japan’s
industrial base rather than remaining concentrated in a few chipmakers. The
manufacturing index peak implies earlier global trade uncertainty that had
weighed on chip‑demand exporters has largely faded. The transportation equipment
index remained at 0, indicating the auto sector has not yet meaningfully
benefited from the broader recovery.
