China's PMI Continued To Fall To 50.1 In August, Hitting A One-year Low / Japanese Prime Minister Yoshihide Suga Will Change An Ally

China's PMI Continued To Fall To 50.1 In August, Hitting A One-year Low

The National Bureau of Statistics of China announced that China's official manufacturing purchasing managers' index (PMI) continued to fall to 50.1 in August, the lowest level in a year and a half, and also lower than market expectations of 50.2. During the period, the non-manufacturing Purchasing Managers Index (PMI) also fell to 47.5, which was significantly lower than the market's expected 52. It was the first time since March last year that it fell below to 50. The previous value was 53.3. The data reflects that the renewed epidemic in some regions has a greater impact on the service industry than expected. Dragged down by concerns about the service industry's prospects, the composite PMI fell to 48.9 for the month, and fell 3.5 month-on-month. The data intensified market concerns about the pace of China's economic recovery or a further slowdown. However, as the epidemic in China seems to be under control, if economic activities can be restarted before the Mid-Autumn Festival and National Day holiday spending season, it is expected to help the service industry's recovery prospects.

Japanese Prime Minister Yoshihide Suga Will Change An Ally

Many Japanese media reported that Japanese Prime Minister Yoshihide Suga expects to replace a long-term unpopular ally in the short term, most likely to be Toshihiro Nikai, secretary general of the Liberal Democratic Party. In addition, he is seeking to take the lead in holding the election of the party leader and the reorganization of the party's management positions before the October Congressional election, in order to increase the public support of the entire Liberal Democratic Party. However, since Prime Minister Yoshihide Suga's recent polls support extremely low, the market estimates that Yoshihide Suga may have a chance to lose his position as party leader. As for the October general election, the Liberal Democratic Party may also lose most of the advantages of Congress, thereby weakening the ability of the next prime minister to govern.