Japan’s services sector shrinks for first time since 2016, USD/JPY tests lows

Japanese Services sector activity fell into contraction for the first time since 2016 in October, mainly due to a powerful typhoon and dwindling domestic demand on the sales tax hike, the latest survey conducted by Jibun bank showed on Wednesday.

The final Japan Services Purchasing Managers' Index (PMI) dropped to 49.7 in October from 52.8 in September, and was down slightly from last week's 49.8 preliminary reading.