Japan Services PMI in January 2018
According to the report provided by Markit Economics, the Japan Services PMI was 51.9 in January 2018 compared to 51.2 in December 2017. It beat the market expectation of 49.9. It was the highest expansion in services activity since October 2017.
The January Japan Services PMI was an improvement over December. The stronger performance was mainly due to the rise in production volume and output. New orders and export orders also improved at a faster rate that month. Job growth in the services sector improved for the 13th consecutive month.
Japan’s business confidence index also showed a stronger improvement in January 2018. Export demand from major Asian economies, including India, China, and Indonesia, improved substantially in January and added more value to outstanding business orders.
Performances of ETFs
The iShares MSCI Japan (EWJ), which tracks the performance of Japan, rose 5% in January 2018. The WisdomTree Japan Hedged Equity ETF (DXJ) rose 1.8% in January. Japan’s major market index, the Nikkei 225 (NIK-INDEX), rose 1.4% that month.
In the next part of this series, we’ll analyze the US ADP National Employment Report for January 2018.