Japan's manufacturing activity grew at a slightly slower pace in February, flash data from IHS Markit showed Wednesday.
The Nikkei flash manufacturing Purchasing Managers' Index fell to 54.0 in February from 54.8 in January. Nonetheless, a score above 50 indicates expansion in the sector.
Data showed that both output and new orders expanded at the slowest pace since October 2017. Meanwhile, employment growth accelerated to a 11-year high.
Joe Hayes, an economist at IHS Markit, said that a number of panellists indicated that the stronger currency had prompted them to lower prices to overseas customers. Indeed, further yen strengthening will create unwanted drag on inflationary pressures.