Japan’s industrial growth accelerates to 55.1 in April while Tokyo inflation stays below BoJ target

Japan’s manufacturing sector showed a pronounced acceleration in April 2026 as the S&P Global Japan Manufacturing PMI rose to 55.1 (flash 54.9), up from 51.6 in March and the strongest reading since January 2022. The report cited robust growth in output and new orders, a positive signal for corporate activity and earnings momentum in Japan. However, Tokyo inflation remains below the Bank of Japan’s target, which could limit near-term policy tightening. Overall, the data is a net positive for Japanese equities (Japan 225) by underscoring cyclical strength, though subdued inflation may temper expectations for tighter BOJ policy and influence currency and rate-sensitive sectors.