Japan producer prices beat market expectations, hit 11-month high in July

Prices for services products provided by Japanese companies to other businesses and government entities jumped in July by the most in almost a year, slightly beating market expectations.

The services producer price index rose by 0.4 percent year-on-year last month, the quickest pace of growth since August 2015, data released by the Bank of Japan showed Thursday. July’s figure was double June’s 0.2 percent pace, remaining above market expectations for 0.1 percent growth.

However, Japan’s overall producer price index contracted 3.9 per cent year-on-year in August, continuing a 16-month losing streak for wholesale prices, and consumer prices remain in deflationary territory.

In the currency market, the US dollar traded in the lower 100 yen-range on Thursday. The Dow fell 65.82 points or 0.4 percent to 18,481.48, the Nasdaq slid 42.38 points or 0.8 percent to 5,217.69 and the S&P 500 dropped 11.46 points or 0.5 percent to 2,175.44.

Meanwhile, crude oil prices fell on Wednesday after the EIA reported an unexpected buildup of crude oil inventories.