Japanese manufacturing disappoints, but the Tokyo Stock Exchange soars to an eight-month high: the Nikkei index closed up 2,07%, at 14.935,92 points, while the Topix gained 1,59%. at 1.220,47 points. Among other Asian markets, Seoul archives a gain of 0,35%, while Shanghai and Hong Kong are closed for the Dragon Boat holiday.
Economic activity in Japan continues to deteriorate: the PMI manufacturing index in May remained below the expansion threshold of 50 points, albeit with a slight increase to 49,9 points, from 49,4 the previous month. The decline in orders weighed on the industrial sector, which was affected by lower sales caused by the VAT increase.
At the same time, China is driving the Asian markets and is reporting a progressive recovery in economic activity. The data on the manufacturing PMI released by the government office highlighted a strengthening of the industrial sector, reaching 50,8 points from the previous 50,4 and exceeding forecasts (50,6 points).
