{"id":441880,"date":"2026-11-11T08:00:06","date_gmt":"2026-11-11T01:00:06","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/reuters-tankan-japan-manufacturer-mood-hits-27-highest-in-over-five-years-on-chips-441880\/"},"modified":"2026-11-11T08:00:06","modified_gmt":"2026-11-11T01:00:06","slug":"reuters-tankan-japan-manufacturer-mood-hits-27-highest-in-over-five-years-on-chips","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/reuters-tankan-japan-manufacturer-mood-hits-27-highest-in-over-five-years-on-chips-441880\/","title":{"rendered":"Reuters Tankan: Japan manufacturer mood hits +27, highest in over five years on chips"},"content":{"rendered":"<div>\n<p dir=\"ltr\">The broad-based jump in confidence, especially among service firms, adds to the picture of a Japanese economy strong enough to cope with higher interest rates. Combined with the reported tight labour market and persistent cost pressure, that could support expectations of further Bank of Japan tightening, which would be supportive for the yen. For equities, the strength in electronics and precision machinery reinforces the chip-led earnings story behind Japan\u2019s tech and equipment names. The caution on passing costs on to customers is a reminder that margin pressure has not gone away.<\/p>\n<p dir=\"ltr\">&#8212;<\/p>\n<p dir=\"ltr\">\nJapan Inc\u2019s mood is at multi-year highs on chips and services, even as rising prices and borrowing costs start to pinch.<\/p>\n<p dir=\"ltr\">Summary:<\/p>\n<ul dir=\"ltr\">\n<li>Reuters Tankan manufacturers\u2019 index rose to +27 in November from +22, the highest since August 2021<\/li>\n<li>Non-manufacturers\u2019 index surged to +35 from +23, the highest since June 2018<\/li>\n<li>Electronics jumped to +39 from +25 on strong memory chip demand, and precision machinery rose to +42 from +38<\/li>\n<li>Services and others more than doubled to +43 from +19, with firms citing a tight labour market<\/li>\n<li>Rising prices and higher interest rates weighed on both sectors<\/li>\n<li>Outlook for February: manufacturers +28, non-manufacturers +29<\/li>\n<\/ul>\n<p dir=\"ltr\">\nJapanese manufacturers\u2019 confidence climbed to its highest level in more than five years in November, lifted by booming semiconductor demand, while sentiment among non-manufacturers reached its strongest in over eight years, according to the Reuters Tankan poll.<\/p>\n<p dir=\"ltr\">The manufacturers\u2019 index rose to +27 from +22 in October, its highest reading since August 2021. The non-manufacturers\u2019 index surged to +35 from +23, a level last seen in June 2018. The monthly poll is closely watched as a leading indicator for the Bank of Japan\u2019s quarterly Tankan business survey. It was conducted from October 27 to November 6, and 214 of the 508 firms surveyed responded. Readings are calculated by subtracting the percentage of pessimistic responses from optimistic ones, so a positive figure signals net optimism.<\/p>\n<p dir=\"ltr\">Chipmakers and their suppliers drove the gain among manufacturers. Sentiment in electronics jumped to +39 from +25, with one respondent describing demand for semiconductors, particularly memory chips, as very strong. Precision machinery, which includes some chip equipment makers, improved to +42 from +38 on robust domestic and overseas orders. Another machinery firm said shipments to the semiconductor market had reached unprecedented levels. Oil refining and ceramics rose to +25 from +14, while chemicals improved to +33 from +27.<\/p>\n<p dir=\"ltr\">The service side of the economy was just as upbeat. Information and communications sentiment rose to +29 from +8 on strong orders, while services and others more than doubled to +43 from +19. One manager pointed to persistently tight labour market conditions keeping demand for staff high.<\/p>\n<p dir=\"ltr\">Not everything was positive. Firms in both sectors said rising prices and higher interest rates were weighing on business, and some reported difficulty passing increased costs on to customers.<\/p>\n<p dir=\"ltr\">Looking ahead, manufacturers expect sentiment to edge up to +28 in February, while non-manufacturers see confidence easing to +29, still well above recent levels. For the Bank of Japan, the combination of strong business confidence, a tight labour market and cost pressures will be one input as it weighs the outlook for policy. Its own quarterly Tankan will be the next major read on corporate sentiment.<\/p>\n<p>                            This article was written by Eamonn Sheridan at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The broad-based jump in confidence, especially among service firms, adds to the picture of a Japanese economy strong enough to cope with higher interest rates. Combined with the reported tight labour market&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-441880","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/441880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=441880"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/441880\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=441880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=441880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=441880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}