Manufacturing activity shrank at the fastest pace in seven months in September, underscoring the broadening economic impact of the China-U.S. trade dispute and keeping policymakers under pressure to step up stimulus.
The Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) slipped to a seasonally adjusted 48.9 from a final 49.3 in the previous month, marking the quickest pace of deterioration since February.
The index stayed below the 50.0 threshold that separates contraction from expansion for the fifth straight month, pressured by a combination of trade friction, Brexit uncertainty and political upheaval in Hong Kong.