29
Sep
Nikkei benefits from even better expectations for 2021
Sharper contraction of GDP (-7.9%) and corporate profits (-46%) in Q2. GDP expected to recover in Q3. Profit growth of +21% in 2021. Excessive valuation of the Nikkei.
Key Points
- The change in prime minister will have no
influence on Japan’s economic policy - Japan’s GDP contracted more sharply than
expected in Q2 2020 - The Japanese economy is already benefiting
significantly from China’s recovery - The BoJ is not expected to change its current
policy in the coming weeks - Return of trade surplus for Japan
- Dead calm interest rate markets and inflation
- Japan’s economy still in desperate need of a
weaker yen - Japanese corporate profits fell by -46%
