Japan's manufacturing sector expanded in August as new orders rose at their fastest pace since January 2018, according to a business survey released on Aug 21.

The S&P Global Flash Japan Manufacturing Purchasing Managers' Index rose to 55.1 in August from 54.5 in July, a preliminary estimate by S&P Global showed, with the 50-mark separating growth from contraction.

"While we saw growth momentum pick up across both manufacturing and service sectors, factories continued to lead growth, registering sharp increases in both production and new orders," said Annabel Fiddes, economics associate director at S&P Global Market Intelligence, Reuters reports.