Tankan recap – Japan firms resilient now but warn of worsening outlook ahead

Japan’s Tankan shows resilient current sentiment but a weakening outlook as the Iran war drives cost pressures. Rising inflation expectations strengthen the case for further BoJ tightening, though growth risks are building. Adding some info on the Tankan to the earlier post, via Reuters recap. Summary:Japan Tankan shows large manufacturers at +17 (vs +16 expected), continuing improvement Large… Adding some info on the Tankan to the earlier post , via Reuters recap. . Summary: . Japan Tankan shows large manufacturers at +17 (vs +16 expected), continuing improvement Large non-manufacturers ... Adding some info on the Tankan to the earlier post , via Reuters recap. Summary: Japan Tankan shows large manufacturers at +17 (vs +16 expected), continuing improvement Large non-manufacturers strong at +36 (vs +33 expected) Firms expect conditions to worsen over next three months Inflation expectations rise to record highs (2.6% 1yr, 2.5% 3–5yr) Middle East/Iran war driving cost pressures and uncertainty, though not fully reflected yet Reinforces BoJ tightening… For traders, the practical value is less about the headline alone and more about how it changes context, sentiment and the quality of the next decision. Watch follow-through, not just the first reaction: liquidity, volatility and confirmation across related assets usually tell the real story.