Japan’s Reuters Tankan manufacturers’ index rose to +17 in November from +8 in October (+9 pts MoM), marking the strongest confidence reading since January 2022 and signaling improved sentiment across key export sectors.

• The non-manufacturers’ index held steady at +27, supported by strong tourism and resilient service-sector activity, with expectations unchanged through February.

• The electronics sector subindex jumped to +25 (from +5), its highest since December 2021, driven by a weaker yen and stronger semiconductor demand.

• The auto and transport machinery sector surged to +27 (from +9), supported by yen depreciation and steady customer orders.

• The yen fell more than 5% MoM to around 154.50 per dollar during the October 28–November 7 survey period, providing a tailwind to export competitiveness.

• Despite improved sentiment, manufacturers expect the overall index to ease slightly to +15 by February, reflecting some concern over soft auto production and global demand.

• Some manufacturers cited ongoing uncertainty from U.S. tariff policy and weaker demand in China as risks to the near-term outlook.