10
Jun
Reduced outlook for Japanese assets
Slowdown in growth. Mixed leading indicators. Inflation still too high. Halt to the normalisation of BoJ policy. Lower risks on long-term rates. The yen may appreciate further. The Nikkei is plateauing.
Key points
- Slowdown in consumption and exports in Q1
- Uncertainty remains high for Q2
- Leading indicators still mixed
- Consumption resilient but still cautious
- Inflation weakens slightly but remains high
- BoJ unlikely to touch rates in 2025
- 10-year yields stall at 1.5%
- Yen likely to strengthen against the dollar
- The Nikkei’s rebound is now likely to run out of steam
