On March 18, the Reuters Tankan survey revealed that, propelled by the rebound in the chemical, oil, and semiconductor sectors, Japanese manufacturers' confidence surged to its loftiest level in over four years during March. Nevertheless, Middle East conflicts, escalating costs, and sluggish demand persist in dampening the outlook. The manufacturing business sentiment index climbed to 18 in March, marking its highest point since December 2021. Specifically, the confidence index for the chemical industry skyrocketed to 21, fueled by heightened demand from chip-related domains. Meanwhile, the indices for the oil and ceramics sectors ascended to 25, and the confidence index for the transport machinery industry soared to 36. However, certain industries underperformed, with the confidence index for the textile, paper, and pulp sectors plummeting sharply from 20 to 11. A manager from a paper and pulp company remarked that the U.S.-Iran conflict has prompted customers to adopt a wait-and-see stance, rendering future demand unpredictable. Confidence within the steel and non-ferrous metals industries remained firmly entrenched in negative territory at -25, primarily owing to feeble orders for steel utilized in automotive-related applications. The business sentiment index for the non-manufacturing sector held steady at 25 in March.