BOJ Tankan Shows Large Manufacturers' Sentiment Rises to Eight-Year High of +24

Japan's large manufacturers' sentiment rose to +24 in the Bank of Japan's September Tankan survey, reaching its highest level since March 2018 despite missing the +25 forecast. Corporate inflation expectations remained firm above the BOJ's 2.0% target, registering at 2.6% over the one-year and three-year horizons and 2.5% over five years. Large non-manufacturers dipped to +35 from +37, while small manufacturers strengthened to +14. Large enterprises plan an 11% to 11.3% increase in capital spending, assuming an average exchange rate of 154 yen per dollar.