Dow Jones Newswires: Japan’s manufacturers sentiment improves for third straight quarter, Tankan shows

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TOKYO — Sentiment among large Japanese manufacturers rose to the highest level since March 2022 during the three months to December, supported by a sharp recovery in the auto sector.

The main index for sentiment among large manufacturers was +12, compared with +9 in September, according to the Bank of Japan’s quarterly Tankan corporate survey released Wednesday. That was higher than economists’ forecast for +10 and marked the third straight quarter of improvements.

The index represents the percentage of companies who said business conditions were favorable minus those who said conditions were unfavorable.

Big manufacturers expect their current profits to rise 2.4% in the fiscal year ending March 2024, based on an assumption that the dollar trades at 138.30 yen, the survey showed. Their profits increased 11.7% in the previous business year.

The dollar USDJPY, +0.04% stood around 145.40 yen Wednesday morning in Tokyo.