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Japan's business sentiment rises to highest since 2018: BOJ Tankan

COVID surge in Asia and supply chain disruptions weigh on outlook

Toyota factory in Fukuoka prefecture. The Bank of Japan's latest Tankan comes out the same day Japan emerges from a half-year long state of emergency, buoying hopes for an economic rebound. (Photo by Shinya Sawai)

TOKYO -- Business sentiment among Japan's large manufacturers has risen to the highest level since 2018, according to the Bank of Japan's latest Tankan survey released on Friday, reflecting positive sentiment among businesses as the Japanese economy reopens after lengthy COVID-19 curbs.

The headline diffusion index of sentiment among large manufacturers came to plus 18 in September, compared with plus 14 in June.

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