14
Jun
Japanese GDP resilient despite trade showdown
GDP growth stabilises at +2% yoy. Cautious consumers. Manufacturing under pressure. BOJ may cut rates to -0.3%. Nikkei impacted by trade tensions.
Key Points
- More positive surprises in Q1 with +0.5% GDP growth
- Japanese growth stabilises at +2% yoy, surprising forecasters
- Less impressive performance than it might seem
- Consumers remain worried
- Leading indicators still weighed down by the manufacturing sector
- Economic upswing in May
- Further decline in trade balance
- BOJ to maintain its expansionary policy
- Weaker yen remains necessary
- Avoid Japanese bonds
- Nikkei impacted by trade war
