BOJ Survey Reveals Mixed Sentiment from Japanese Business

The Bank of Japan's quarterly Tankan survey shows that sentiment among large Japanese manufacturers improved in September, rising to +24 points from +22 in June. This marks a slight increase below market forecasts, which had anticipated a reading of +25 points.

However, the business sentiment index for non-manufacturing companies fell to +35 points from +37 in June, missing market expectations of +36 points.

Companies polled by the survey also reported higher inflation expectations, forecasting 2.6% and 2.5% annual inflation rates over three and five years respectively, which exceeds the Bank of Japan's target of 2%.