26
Sep
The Japanese economy rallies, GDP jumps up +3% in Q2
Highest rate of GDP growth since 2016. Expected depreciation of the yen is the determining factor. Leading indicators still uncertain. Rising inflation. Nikkei achieves 24,000 target.
Key points
- Unexpected and welcome surge in Japanese GDP (+0.7%) after a weak Q1 (-0.2%)
- Highest annualised rate of GDP growth since 2016 (+3%)
- Pace of growth to remain sustained in Q2
- Bilateral negotiations to avoid the worst
- Corporate earnings on the rise
- Tentative increase in household spending, consumption is struggling to take off
- Uncertainty holds leading indicators in check, PMIs are stagnating
- Yen weaker still in 2019
- Inflation (1.3%) is benefitting from the yen’s weakness
- The Nikkei soars to new heights
