Bank of Japan Tankan Shows Large Manufacturers Improving as AI-Linked Demand Lifts Sentiment

Japan's large manufacturers reported stronger business conditions in the Bank of Japan's September Tankan, with the diffusion index rising to 24 from 22 as AI-linked semiconductor and data-center demand continued to support factory sentiment. The quarterly survey showed the improvement was not confined to the largest exporters: medium-sized manufacturers rose to 23 from 17, small manufacturers rose to 14 from 9, while large nonmanufacturers slipped to 35 from 37.