Reported Earlier, au Jibun Bank Japan Services Purchasing Managers' Index (PMI) Preliminary 52 Vs. 50.8 Prior
Portfolio Pulse from Benzinga Newsdesk
The au Jibun Bank Japan Services Purchasing Managers' Index (PMI) showed a preliminary reading of 52, an increase from the prior 50.8, indicating an expansion in the services sector.
December 15, 2023 | 5:51 am
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POSITIVE IMPACT
The rise in Japan Services PMI suggests an expanding services sector, which could be positive for the JPMorgan BetaBuilders Japan ETF (BBJP) that tracks Japanese equities.
The PMI is a leading indicator of economic health. A higher PMI reading is typically positive for equity markets, suggesting increased economic activity and potentially higher corporate earnings.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The WisdomTree Japan Hedged Equity Fund (DXJ) may benefit from the positive PMI data, as it invests in Japanese equities while hedging against currency risk.
A stronger services sector often leads to better performance in the equity markets. DXJ's strategy to hedge currency risk makes it attractive if the yen is volatile, while still benefiting from local market growth.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares MSCI Japan ETF (EWJ), which offers exposure to large and mid-sized companies in Japan, could see a positive impact from the improved PMI figures.
The PMI increase suggests a healthier economy and service sector, which can lead to higher corporate profits and potentially boost stock prices for companies within EWJ's portfolio.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70