BOJ Survey to Reveal Boost in Japanese Manufacturers' Sentiment

The Bank of Japan's (BOJ) quarterly survey for September is expected to show improved business sentiment among major Japanese manufacturers, according to private think tanks.

Many think tanks, including Daiichi Life Research Institute Co., anticipate that demand related to artificial intelligence and semiconductors will boost business sentiment.

The average forecast from 12 think tanks puts the headline diffusion index for large manufacturers' current business conditions at plus 26, up 4 points from the previous June tankan.

This improvement is expected to influence the BOJ's decision on an additional interest rate hike, as it will analyze inflationary risks stemming from higher crude oil prices and AI-related demand.