Japan's Reuters Tankan survey showed business confidence improved in August 2026, with the manufacturers' index rising to +18 from +13 in July, the highest since March 2026, and the non-manufacturers' index climbing to +28 from +25. Semiconductor-related industries drove the manufacturing gain, with the chemicals sub-index increasing to +33 from +23 and the metal and machinery index advancing to +25 from +12, while transport equipment remained flat at zero amid mixed automotive conditions. Non-manufacturers were supported by strong domestic consumption, with gains across wholesale trade, information services and other services. In the three-month outlook, manufacturers expected sentiment to ease slightly to +16 in November, while non-manufacturers saw conditions holding at +28.