Positive economic situation in Japan. Mixed leading indicators. Weak yen pushes inflation up. Monetary policy still expansionary. Interest-free bond yields. Weakening outlook for the Nikkei.

Key points

• Very positive revision of Japanese GDP in Q2 (+3.5%)
• Less favourable outlook for the current quarter
• Leading indicators still moderately optimistic
• Surprising increase in retail sales in a still sluggish consumer climate
• Trade deficit widens further
• Japanese inflation advances but remains subdued
• BoJ to change policy slowly
• Japanese bonds still offer no interest
• Target 150 for the yen/USD exchange rate?
• Weakening outlook for the Nikkei index

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