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What Made the Japan Services PMI Rise So Much in April?

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Japan Services PMI in April

According to a report provided by Markit Economics, the Japan Services PMI (Purchasing Managers’ Index) rose significantly in April compared to March. It was 52.5 in April and 50.9 in March. It beat the market expectation of 52.

The rise in services activity in April was mainly due to strong improvement in production volume and output. New orders and export orders grew at a higher rate in April, reaching a five-month high. Job growth in the services sector also rose at a faster rate.

More exports and a stronger domestic demand helped Japan’s services industry. The country’s business confidence index also rose strongly in April.

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Performances of ETFs in April

The iShares MSCI Japan ETF (EWJ), which tracks the performance of Japan, remained flat in April. But the WisdomTree Japan Hedged Equity ETF (DXJ) spiked 2.2%.

In the next part of this series, we’ll analyze the performance of the Eurozone Sentix Investor Confidence in May.

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