Japan's service sector activity expanded at a record pace in May, a private-sector survey showed on Monday, thanks to a recovery in overseas demand and a surge of foreign tourists as pandemic restrictions were eased further.

The final au Jibun Bank Japan Services purchasing managers' index (PMI) rose to a seasonally adjusted 55.9 last month from the previous peak of 55.4 in April.

That compared with the flash reading of 56.3 and was well above the 50-mark that separates expansion from contraction for a ninth straight month.