TOKYO (AP) — Sentiment among Japan’s large manufacturers improved for a second straight quarter, according to a closely watched Bank of Japan survey, making a rate hike by its central bank more likely.

The quarterly survey, called the “tankan,” showed the outlook among major manufacturers, the key so-called diffusion index, rose 1 point to plus 14 from the findings in June.

The survey is an indicator of companies foreseeing good conditions minus those feeling pessimistic.

The tankan for large manufacturers was plus 12 in March, marking the first drop in a year. Sentiment among large non-manufacturers was unchanged at plus 34, according to the latest tankan.

The relative optimism in the latest tankan reflects some relief over an agreement on tariffs with the U.S., reached in July.

The

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