FX.co ★ Japan’s Reuters Tankan Sentiment Climbs to 18 in August, Highest Since July Reading of 13

Business sentiment among Japanese manufacturers improved in August, with the Reuters Tankan index rising to 18 from 13 in July 2026, according to data updated on 11 August 2026.

The increase in the index suggests a strengthening outlook among surveyed firms compared with the previous month. July’s reading of 13 had already signaled positive sentiment, and the move to 18 in August marks a further step up in confidence within Japan’s corporate sector.

The Reuters Tankan index is closely watched as a timely gauge of business conditions ahead of official survey releases, and the August reading indicates that Japanese businesses entered late summer on a firmer footing than in July.