Japan preliminary December PMI shows modest growth as services offset factory weakness

"The PMI data from Japan serves as an important indicator of economic recovery; however, the weaknesses in manufacturing remain a significant concern. The growth in the services sector bolsters overall conditions, yet the persistent contraction in manufacturing and soft external demand could impede stable growth. With the BOJ meeting in December likely resulting in a rate hike, the implications of employment increases and service growth support inflation sustainability while cautioning against potential risks. Although domestic indicators appear favorable, the environment is complex, and traders should closely monitor the evolving market dynamics influenced by global interest rate differentials."