Japan's manufacturing sector contracts at slower pace in December, PMI shows | Metals Mine

  • Japan's manufacturing sector contracts at slower pace in December, PMI shows

    From channelnewsasia.com

    Japan's manufacturing activity contracted at a slower pace while the service sector lost some steam in December, private-sector surveys showed, weighing on the economy at the end of 2025. Looking ahead to 2026, business confidence was robust but waned from the previous month particularly in manufacturing, attributing the uncertain outlook to global economic conditions, an ageing population and rising costs. The S&P Global flash Japan Manufacturing Purchasing Managers' Index (PMI) rose to 49.7 from 48.7 in November, extending a contraction for the sixth straight month. The 50.0 threshold separates expansion from ... (full story)

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ZforexCM
Dec 16, 2025 1:31am
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The yen strengthened toward the 155 level as markets positioned ahead of an expected Bank of Japan rate hike, despite mixed economic signals from December PMI data. Manufacturing activity remained in contraction, though at a slower pace, while services growth cooled slightly, pointing to a softer but still resilient domestic backdrop. Rising employment and accelerating price pressures suggest inflation risks remain present, even as growth momentum moderates.

These conditions keep expectations alive for a 25-basis-point hike this week, with investors closely watching Governor Ueda’s guidance for 2026.

Technically, resistance stands near 155.70, while support is firm at 154.30.
R1: 155.70 | S1: 154.30
R2: 156.50 | S2: 153.60
R3: 157.00 | S3: 152.80
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