New contraction in Q2?. Leading indicators not encouraging. Domestic consumption remains weak. Imports +46%. Exports +19%. Low inflation in international comparison. Status quo at the BoJ. Opportunities in stocks.

Key points

• Is a new contraction of GDP in Q2 possible ?
• Growth outlook revised downward
• Leading indicators point to further limited growth in Q3
• Households remain cautious
• The trade deficit will be reduced in the short term
• Japanese inflation remains limited despite high
  commodity prices
• The BoJ is not ready to change its policy
• Reduced fluctuations in capital markets
• Yen is still in a sluggish trend
• Nikkei index remains on an upward trend

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