Japan manufacturers’ sentiment index hits plus-21 as semiconductor demand drives recovery

Japanese manufacturers reported a sharp uptick in business sentiment in September, with the Reuters Tankan index climbing to plus-21—its highest level since December 2021. The improvement follows a steady recovery from plus-7 in April, with respondents projecting further strength to plus-27 over the next three months. The sector-specific data underscores a pronounced shift toward electronics, where the sub-index surged to plus-39, up from plus-24 in August, reflecting sustained demand for semiconductors and data-center infrastructure.