Japan Business Sentiment Rises Amid Oil Price Shock

The Bank of Japan's tankan survey has reported improved business sentiment in Japan, despite facing significant challenges. The latest reading shows sentiment among large manufacturers rising to 24 from 22, while non-manufacturers slipped to 35 from 37.

The upbeat assessment comes as Japan struggles with higher oil prices, a weak yen, and rising import costs. Despite this, the central bank has raised its benchmark interest rate twice this year, taking it to 1.25 per cent, its highest level in three decades.

The survey measures companies' expectations for good conditions against those feeling pessimistic, with the latest findings indicating continued improvement in business sentiment.