Japan PMI Climbs to 55.1 Peak but Supply Strains Fuel Sustainability Worries

Japan’s final manufacturing PMI confirmed at 55.1 in April, up sharply from 51.6 in March and the highest since January 2022, driving initial optimism in factory output and sales. However, the surge stems largely from stockpiling amid Middle East disruptions, with supplier delivery times at a 15-year worst and input costs at a 3.5-year high. Business confidence slipped near multi-year lows, signaling fragile underlying demand. This mixed picture risks overstating strength, potentially pressuring Japan 225 sentiment and sparking volatility if supply issues persist.