China Factory Activity Likely Edged Back to Growth in June: Reuters Poll

China's manufacturing sector is poised for a marginal return to growth in June, according to a Reuters poll of economists. The official Purchasing Managers' Index (PMI) is forecast to rise to 50.1, a level just above the 50-point threshold that distinguishes expansion from contraction. This anticipated uptick is primarily attributed to strong performance in technology exports, which are helping to offset underlying weaknesses in the broader Chinese economy.

In contrast, Toyota Motor reported a significant downturn in its global sales for May. The Japanese automaker's sales fell by 7.2% compared to the same period last year, marking the fourth consecutive month of year-on-year decline. This slump was heavily influenced by decreased sales in key markets such as China and the Middle East. Sales in the United States also saw a slight reduction, contributing to the overall negative trend.

Separately, the Japanese government is outlining ambitious economic growth targets in its new long-term economic blueprint. The plan aims to achieve annual real economic growth exceeding 1%, more than doubling the country's current growth rate. This strategy is coupled with initiatives to stimulate private sector investment and ensure the long-term sustainability of public finances. The government intends to foster an environment conducive to higher investment and maintain fiscal discipline as it pursues this accelerated growth trajectory.