Business sentiment among Japan's large manufacturers is widely expected to show an improvement for the second straight quarter in the upcoming Tankan survey. The Bank of Japan is due to release the results on October 2.

Eight out of 12 private think tanks believe the index will come out higher than the plus five seen in the previous quarterly survey. Many of those expect a small rise of up to nine points.

Reasons include a pickup in the production of automobiles and machinery, backed by an easing of longstanding semiconductor shortages.

Three think tanks expect the index to remain unchanged, while one is forecasting a slight drop.
They believe the slowdown in China and surging raw materials prices are dragging on sentiment among manufacturers.

Looking at large non-manufacturers, 10 out of 12 think tanks are projecting an improvement, with the hotel and dining industries buoyed by rebounding overseas tourism.