A pullback in investment could signal cost-saving efforts and slower job creation rates. Softer labor market conditions could affect wage growth, household spending, and demand-driven inflation.

Later in the morning session, finalized Jibun Bank Manufacturing PMI numbers also need consideration. According to the preliminary PMI survey, the Manufacturing PMI increased by 49.6 to 50.5 in May. Upward revisions to the PMI could signal an improving demand environment. Nevertheless, the Manufacturing PMI will unlikely influence the Bank of Japan rate path.

The services sector, household spending, and inflation are the focal points vis-a-vis monetary policy.

Beyond the numbers, investors should monitor Bank of Japan commentary. After the hotter-than-expected inflation numbers for Tokyo, views on the timing of an interest rate hike would move the dial.

US Economic Calendar: Manufacturing PMIs in Focus

Later in the Monday session, the US ISM Manufacturing PMI needs consideration. Economists forecast the ISM Manufacturing PMI to increase from 49.2 to 49.8 in May. Better-than-expected numbers would support expectations of a soft US landing.

Nevertheless, the PMI numbers will unlikely influence the Fed rate path. The manufacturing sector accounts for less than 30% of the US economy.