[Improved Confidence in Japan's Manufacturing Sector Supports BOJ's Rate Hike Stance] Jin10 Data, April 1 – Despite the outbreak of the Middle East crisis, confidence among Japan's large manufacturing enterprises in their business conditions improved for the fourth consecutive quarter, supporting the Bank of Japan's (BOJ) stance on continuing rate hikes. The BOJ's Tankan survey released on Wednesday showed that the business sentiment index for March rose to 17 from the revised 16 in the previous quarter. The large non-manufacturing business sentiment index remained flat at 36 after the previous quarter's data revision, staying near its strongest level since 1991. However, the outlook for large enterprises weakened slightly, with the manufacturing sentiment index dipping to 14 and the non-manufacturing index falling from the revised 31 to 29. The Tankan survey is one of the BOJ's most closely watched indicators, and it suggests that, at least for now, optimism among Japanese businesses remains solid. If the BOJ decides to raise interest rates after the impact of the Iran conflict becomes clearer, this could be one of the factors it cites. Traders currently estimate the likelihood of a rate hike later this month at approximately 69%.