Japan’s Business Confidence Beats Expectations Despite Tariffs

Confidence among Japan’s large manufacturers edged up in June, reflecting resilience in the face of the escalating US tariff campaign and backing the case for another Bank of Japan interest rate hike this year.

The sentiment index for the country’s major manufacturers climbed to 13 from 12 in March, according to the BOJ’s quarterly Tankan report Tuesday, beating economists’ expectations that it’ll fall to 10. The improvement was led by steel and paper makers. The gauge for large non-manufacturers slipped slightly to 34 from 35, staying near the highest levels since the early 1990s.