Japan Manufacturing PMI in May

The Japan Manufacturing PMI (purchasing managers’ index) stood at 53.1 in May 2017, as compared to 52.7 in April, outperforming the preliminary market estimation of 52.0.

Japan’s Manufacturing PMI in May, and What to Make of It

The Japan Manufacturing PMI showed a huge contraction between March and August 2016. However, this manufacturing PMI in May showed improvement over April. Remember, a level above 50 indicates an expansion in manufacturing activity, while a level below 50 indicates contraction in manufacturing activity.

The improvement in the Japan Manufacturing PMI in May was mainly driven by stronger improvements in new orders, production output, and export orders in Japan. Japan’s (EWJ) (DXJ) first quarter economic growth showed 0.5% growth, which beat the market expectation of 0.4% growth. Improvements in domestic demand, which rose 0.4% in the first quarter, contributed the most to Japan’s GDP.

These indicators show that personal income is improving gradually in the Japanese economy, which could push up consumer spending in the near future. Japan’s economy also highly depends on its export business and overseas (ACWI) (VTI) (VEU) demand. The improvement in exports is another positive point for the country.

Performance of various ETFs

The iShares MSCI Japan ETF (EWJ), which tracks the performance of Japan, rose nearly 2.3% in May 2017. Japan’s Nikkei stock index rose nearly 1.7% for the month.

In the next part of this series, we’ll analyze the UK Manufacturing PMI (FXI) for May 2017.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.