08
Mar
Japan well positioned to benefit from the recovery in world trade in 2021
Recovery will only get under way in Q2. High potential for recovery of Japanese exports. Consumption may strengthen significantly. Weakness of the yen is the only option. Upward revision of corporate profits.
Key Points
- Double-digit growth in Q4 points to positive momentum for 2021
- Increase in consumption and exports
- Better outlook for Q2
- Leading indicators still uncertain
- Consumer confidence is improving
- Japan’s economic surplus hits USD 6 bn
- Japan can’t seem to get rid of deflation
- The BOJ needs a new strategy
- Japanese long-term rates following the general trend
- Weak yen remains the only option
- Japanese equities to benefit from earnings revision cycle
