Japanese manufacturers reported improved confidence in October, with the Reuters Tankan sentiment index rising to plus 7 from plus 4 in September.

However, concerns about China's economic recovery persisted.

The survey of 506 non-financial companies indicated optimism in sectors like chemicals and food, with manufacturers projecting the index to reach plus 9 in the next three months.

In contrast, the service sector's sentiment fell to plus 20 in October from plus 23 in the preceding month, the lowest since February, primarily due to declines in the transport and wholesale sectors.

Wholesalers faced difficulties passing on higher energy costs. Despite this, service firms expect a rebound to plus 22 by January, driven by investments in information systems and foreign tourist spending.