09.09.202523:26:46UTC+00Japan Manufacturers’ Mood Hits 3-Year High

The Reuters Tankan index for Japanese manufacturers climbed to +13 in September 2025, marking its highest point since August 2022. This rise was largely attributed to diminishing trade uncertainties after a tariff agreement was reached with the United States. Sentiment saw an improvement across six out of nine manufacturing sectors, with autos and transport machinery leading the way. Sector managers reported steady foreign orders but observed that domestic production remained lackluster due to weaker exports in recent months. This positive shift follows last week's executive order by U.S. President Trump, which formalized the trade agreement with Japan. The deal includes a reduced tariff rate of 15% on significant Japanese exports such as automobiles. This development eased concerns in Tokyo regarding the agreement’s execution and boosted business confidence. Looking forward, manufacturers anticipate a slight decline in sentiment to +11 by December, reflecting ongoing concerns about the fragility of the domestic economy.