Japanese manufacturer sentiment strengthened in Q1, rising to 17 from 16 in the previous quarter, exceeding market expectations.

Japanese manufacturer sentiment strengthened in Q1, rising to 17 from 16 in the previous quarter, exceeding market expectations. Non-manufacturers held steady at 36, surpassing consensus forecasts of 33. Manufacturing PMI was revised upward to 51.6, though it remains below February's 53. This solid business confidence provides support for the Bank of Japan's anticipated April interest rate hike. While sentiment indicators show resilience among large corporations, the outlook remains cautious as companies navigate uncertain economic conditions. The data suggests Japan's economy maintains underlying strength despite global headwinds, reinforcing expectations for continued monetary policy normalization.