Japan's manufacturing activity contracted at the fastest pace in two years in November as demand worsened due to strong inflationary pressures, a business survey showed on Thursday.
The contraction in factory activity also marked the first monthly decline in 22 months and raised a question mark over Japan's economic outlook as the country relies heavily on trade with China and other nations for its growth.
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) slipped to a seasonally adjusted 49.4 in November from a final reading of 50.7 in the previous month.