Japan's factory activity reached a 4-year high in February, driven by robust domestic and international demand. The S&P Global flash Manufacturing Purchasing Managers' Index (PMI) rose to 52.8, the highest since early 2022, signaling expansion in the industrial sector. Manufacturing output surged to 53.9, marking the sharpest increase in over four years.

Services activity also expanded to 53.8, reflecting strong private-sector growth. New orders hit a 4-year high, while employment grew at the fastest pace in over four years, though capacity pressures mounted. Input costs and selling prices rose slightly, and business optimism climbed to a 15-month peak, underscoring a resilient economy.