The Bank of Japan's sentiment index for large manufacturers rose to 15 in Q4 2025 from 14 in Q3, marking a third straight quarterly improvement and the highest level since Q4 2021. The reading met market expectations, supported by a weak yen and solid global demand, particularly from the AI sector. Confidence improved across a wide range of industries, including chemicals, electrical machinery, shipbuilding, petroleum, and food and beverages, while traditionally pressured sectors such as iron and steel also showed modest gains.
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