Japan business confidence rises amid global slowdown

Business sentiment in Japan has seen a boost in the three months leading to September, as revealed by a Bank of Japan “tankan” survey. The confidence index for major manufacturers went up to 9 in September from June's 5, surpassing market predictions of 6. Large non-manufacturers recorded an increase, with the index rising to 27 from 23, compared to a forecasted 24. Furthermore, big firms anticipate a 13.6% rise in capital expenditure for the fiscal year ending in March 2024. The survey results will be crucial for Bank of Japan policymakers as they decide on potential interest rate hikes. Despite a 4.8% economic growth in April-June, analysts predict a mild dip for July-September due to declining global demand affecting exports.