Japan May, P Nikkei Manufacturing PMI 49.6;...>

JAPAN: Japan May, P Nikkei Manufacturing PMI 49.6; Apr 50.2

Key points:

- Flash Japan Manufacturing PMI falls to 49.6 in May, from 50.2 in April.

- Output and new orders decrease for fifth successive month

- Businesses cast pessimistic outlook towards the coming year for the first time

in six-and-a-half years

- "Following some tentative signs that the downturn in Japan's manufacturing

sector had softened in April, flash data for May revealed these were

short-lived, as output and export orders fell at stronger rates. The

re-escalation of US-China trade frictions has heightened concern among Japanese

goods producers. Underlying growth weakness across much of Asia led to

struggling exports, which fell at the sharpest rate in four months. Difficulties

on the international front merely add to uncertainties domestically, with

upcoming upper house elections in July, and the impending sales tax hike later

this year. Subsequently, sentiment turned negative in May for the first time in

six-and-a half years."