Japan’s manufacturing sector expanded at a faster pace in August, with the S&P Global Flash Japan Manufacturing PMI rising to 55.1 from 54.5 in July. New orders increased at their fastest rate since January 2018, while total sales and overseas demand posted their steepest gains in more than eight and a half years, supported by demand from semiconductor and artificial-intelligence industries. Services activity also strengthened, lifting the Composite Output Index to its highest level since February. Manufacturers led employment growth and increased input buying, although supplier delivery times lengthened markedly. Private-sector input-cost inflation eased to a five-month low, but selling prices for goods and services rose at one of the steepest rates on record. Business confidence improved to its highest level since February. The data offered a positive counterpoint to Japan’s weaker second-quarter economic growth, which investors viewed as reflecting one-off factors.