FX.co ★ Japan Manufacturers' Mood Steady in July

The Reuters Tankan index for Japanese manufacturers was +13 in July 2026, unchanged from June after having risen for the previous two months, underpinned by firm semiconductor demand. Manufacturers reported a recovery in the semiconductor market — including memory-related demand — and a sharp increase in orders for products used in chip applications and AI servers. In contrast, sentiment among non-manufacturers fell to +25 from +32, as the Middle East conflict, a weaker yen, and rising interest rates drove up costs. Looking ahead, manufacturers expect sentiment to edge up to +14 in October, while non-manufacturers see their index steady at +25 as businesses continue to gauge the impact of geopolitical risks and ongoing supply chain disruptions.