Japan’s service PMI in May
According to Markit Economics, Japan’s service PMI rose marginally month-over-month in May, to 51 from 52.5. It missed the market expectation of 52.
Although Japan’s service PMI fell in May, its overall business confidence remained strong. Its sales and new orders slowed, while its production output and volumes rose marginally.
Export orders rose strongly. However, trade war concerns grew after Donald Trump’s announcement about the imposition of import tariffs on steel and aluminum from Canada, Mexico, and the Eurozone, which affected domestic consumer demand.
The iShares MSCI Japan ETF (EWJ) fell 1.4% in May, and the WisdomTree Japan Hedged Equity ETF (DXJ) fell 3%, primarily due to trade war concerns. In the next part of this series, we’ll analyze the Eurozone Sentix investor confidence index this month.