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 remaini

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.