The Japanese manufacturing sector has faced consistent struggles as factory activity contracted for the seventh straight month in December according to a private survey. The manufacturing purchasing managers’ index shrank to 47.7 in December from 48.3 in November, signaling the quickest deterioration in manufacturing business conditions in ten months. This reading below 50 shows contraction. The services PMI, however, saw a positive bump to 52.0 in December from 50.8 in November, the fastest gain in three months. Despite this growth, the survey noted that services growth remained softer than the average.
Meanwhile, Australia’s private sector activity has also been struggling, with the composite purchasing managers’ index for the country standing at 47.4 compared to 46.2 in November. The bank noted that demand conditions remained under pressure, but inflation for input costs eased. Overall employment continues to grow, and companies’ optimism improved from November.
In other news, fund managers remain bullish on the long-term prospects of solar stocks as interest rates go down. Federal Reserve Chair Jerome Powell’s dovish tone on Wednesday raises the likelihood of rate cuts coming sooner, and the softer dollar has had an impact on oil prices, providing a slight upgrade to demand growth in 2024. Finally, the 10-year Treasury yield has dropped below 4% for the first time since August, as traders mount bets on Fed rate cuts for 2024.