16
Mar
Moderate outlook for the Nikkei
Growth at a standstill in Q4. Mixed leading indicators. Slight improvement in consumer confidence. Trade deficit narrowed. Inflation down. Expansionary monetary policy. Moderate outlook for the Nikkei.
Key points
- Japan’s economy stalled in Q4 (9%)
- Barely positive outlook for Q1 2023
- GDP growth up +1% in 2023
- Leading indicators still moderately optimistic
- Weak improvement in consumer confidence
- Trade deficit decreases by -50% but persists
- Japanese inflation finally seems to be easing
- BoJ also faces post-SVB adjustments
- Yen yields still unattractive
- Interest rate differentials still unfavorable for the yen
- Mixed outlook for Japanese equities
