The final Markit/Nikkei manufacturing Purchasing Managers' Index (PMI) for Japan increased to 52.6 in November from 52.4 in October, down from the preliminary reading of 52.8. It was the highest reading since reading since March 2014.

A reading above 50 indicates expansion, a reading below 50 indicates contraction of activity.

The index was driven by a rise in new orders, employment and buying activity.

"Supporting total new order growth was an increase in international demand, as new export orders rose at the quickest rate since June. Subsequently, both buying activity and employment expanded, with the former increasing at the sharpest rate in over a year," economist at Markit, Amy Brownbill, said.