30
Sep
Tactical dissolution in Japan, 180-degree turn for Shinzo Abe
GDP up +2.5% yoy. Positive contribution of exports and consumption. Improvement in earnings growth outlook. Nikkei relatively attractive.
Key Points
- GDP growth in Japan accelerates to +2.5% yoy
- Export boom continues (+18.1%)
- Trade balance grows to 113 billion yen
- The North Korean crisis fails to affect private consumption, up +0.6%
- Wave of positive economic indicators in September
- Tactical dissolution of the lower house
- Snap election likely favourable to the LDP
- Status quo at the BOJ and yen stable in the 110-120 range
- Avoid bonds in spite of persistently low inflation
- Japanese equities remain relatively attractive
