29
May
Positive surprise in Japan: GDP surges by +2.2% yoy
Falling yen boosts exports. GDP also benefits from global economic recovery. Stabilisation of the yen. Pick-up in consumption. Increase in profits. Nikkei undervalued.
Key points
- Remarkable Q1 in Japan in terms of economic growth
- Fifth consecutive month of export growth
- Japan GDP rises 2.2% yoy in March and 0.5% over the quarter
- Positive contribution of exports and domestic demand
- Positive signs with regard to consumption
- Fluctuation of leading indicators
- Stabilisation of the yen/dollar between 115 and 120
- Return of inflation still barely perceptible
- Continue to avoid yen-denominated bonds
- Increase in profits and dividends
- Japanese equities undervalued by international standards
