Sentiment of major manufacturers in Japan show improvement despite US tariffs

As reported by Bloomberg, sentiment among major Japanese manufacturers showed growth in June. These changes reflect the resilience of Japan's economy ahead of US tariffs tightening and another interest rate hike.

According to the quarterly Tankan report, large manufacturers index rose from 12 in March to 13 points in June. This exceeded economists' expectations. The growth was primarily recorded in such industries as steel and paper manufacturing. This trend will likely strengthen Bank of Japan Governor Kazuo Ueda's confidence in the need for raising interest rates at the end of July, the news agency added.

The yen also showed steady momentum against the dollar. The exchange rate fell by 0.4% to 143.693 yen per dollar. According to Taro Kimura, an economist at Bloomberg, current shifts in producer sentiment indicate that exporters are demonstrating resilience despite tariff pressure from the US. Meanwhile, price indicators suggest domestic inflationary momentum remains on track with the Bank of Japan's 2% target.