The Reuters Tankan index for Japanese manufacturers increased for the third consecutive month to +22 in October 2026 from +21 in the previous month, marking the highest reading since December 2021, supported by solid semiconductor and data center demand. Meanwhile, non-manufacturers’ sentiment fell to +23 from +29, marking the lowest reading since November 2024, amid rising costs and interest rate hikes. Looking three months ahead, manufacturers expect sentiment to improve to +23, while non-manufacturers expect sentiment to weaken to +21.