Nikkei/Markit PMIs from Japan.
Not so bad. The PMIs are often looked to as forward indicators. If the results from japan PMIs this month are anything to go by the economy is showing more resilience than we should have probably expected.
Comments from the report:
"Japan's services economy continued to tick along at a modest pace during May. Taken in conjunction with the earlier-released manufacturing PMI, private sector output in Japan is growing at a rate that's broadly in line with the underwhelming average seen in the opening quarter. The current underlying trend in Japan's economy is disappointing and will certainly warrant concern from Abe amid the upcoming upper house elections in July and the scheduled consumption tax hike later this year. Indeed, service sector panellists indicated a degree of concern towards the sales tax increase, which pulled sentiment to its joint-lowest level in 18 months."
Yen impact, not much. USD/JPY is being buffeted by trade war escalation and, overnight, further speculation on Fed rate cuts on the horizon.
