Japan's manufacturing PMI drops to lowest since June 2016

The Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) has dropped to 48.9 in September, the lowest level since June 2016. 

The PMI stood at 49.3 in June. A reading below 50 indicates contraction.

Both new orders and new export orders have declined in September, although at a weaker pace.  

The contraction in Japan's manufacturing is hardly surprising, given the external headwinds, namely, US-China trade tensions, the Hong Kong protests, Brexit and the diplomatic issues between Japan and South Korea.