FX.co ★ Japan Manufacturers' Mood Highest in Near 5 Years

The Reuters Tankan index for Japanese manufacturers rose for the fourth consecutive month in November 2026, reaching +27 from +22 in the previous month. This was the highest reading since August 2021, driven by sustained strength in semiconductor and data center demand. The electronics sector climbed sharply to +39 from +25, while precision machinery, including chipmaking equipment, led the gains, rising to +42 from +38 on the back of robust domestic and overseas demand. Other sectors also strengthened: chemicals advanced to +33 from +27, and oil refining and ceramics improved to +25 from +14. Sentiment among non-manufacturers increased to +35—its highest level since June 2018—from +23, which had been the lowest reading since November 2024, signaling a strong rebound in confidence across services and other domestically oriented industries. Looking ahead three months, manufacturers expect sentiment to edge up further to +28, while non-manufacturers anticipate a slight softening in sentiment to +29.