Good news for Japan’s services sector as it rebounded in November, back into expansion after contracting for the first time since 2016 during the previous months. The Jibun Bank Services PMI index rose to 50.3 in November after dipping below the 50 threshold to 49.7 during October.

Although the reading came in above the 50 threshold indicating expansion, it was slightly below the prelim reading for the figure which stood at 50.4. The growth in the services sector in Japan was supported by a slight improvement in the number of new orders received.

Business activity also posted an expansion in November while employment posted a strong uptick as well. On a more positive note, business confidence among services companies in Japan rose to a five-month high.

The Japanese yen is trading strong on account of the risk-off sentiment in global markets, which is supporting the safe haven appeal of this currency. At the time of writing, USD/JPY continues to trade somewhat bearish at around 108.57.