Japan's Nikkei jumps 3.3% as Tankan hits eight-year high

The Nikkei 225 surged 3.3% to 68,956.72 on October 1, 2026, its highest close since mid-August, led by chip and AI-related stocks. The rally came as the Bank of Japan's quarterly Tankan survey put the large-manufacturer index at +24, the highest reading since March 2018, though just below the +25 consensus. Large non-manufacturers slipped to +35. Companies told the BOJ they expect inflation of 2.6% within three years, strengthening the case for further rate increases at the central bank's October 29–30 meeting. The move came against a mixed Asian backdrop: China and Hong Kong were closed for the National Day holiday, while South Korea's record exports and Taiwan's PMI of 56.7 confirmed the region's AI-powered manufacturing boom. The yen's steadiness around key levels and robust export earnings have combined to lift Japanese equities back toward their June all-time high of 73,007.