Economic downturn. Leading indicators still mixed. Weak consumer confidence. Inflation at its highest. Yen stabilises. Policy monetary policy still expansionary. Moderate positive outlook for the Nikkei.

Key points

• Japanese economy shrinks by 0.8% in Q3
• Outlook for Q4 still gloomy
• Leading indicators still moderately optimistic
• Consumer confidence is at an all-time low
• Trade deficit remains at an all-time low
• Japanese inflation hits a new high
• BoJ will maintain its strategy of absolute control of the yield curve
• Japanese bonds still offer no interest
• Yen stabilises after three months of extreme volatility
• Moderately positive outlook for the Nikkei index

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