Confidence among large Japanese manufacturers hits a more than eight-year high, boosting expectations for a Bank of Japan rate hike.

According to Zhitong Finance APP, the quarterly Tankan survey released by the Bank of Japan on Thursday showed that the business sentiment index for large manufacturers rose to 24 in September from 22, improving for a sixth consecutive quarter and hitting the highest level in more than eight years, but slightly below the 25 expected by economists surveyed by Bloomberg. The survey is one of the most closely watched data points for the Bank of Japan. The sentiment index for large non-manufacturers edged down to 35 from 37. A positive index means that more companies consider business conditions "favorable" than "unfavorable."