Japanese companies continue to respond positively to the improving domestic conditions as they begin to regain some pricing power after almost two decades of deflation.
Quickview: Consumption and capex the bright spots in a weaker-than-expected Japan GDP report.
Japan may appear less exposed than some other countries to US trade risks but it would still be affected by anti-globalisation measures.
The Japanese economy continues to struggle to regain momentum. We expect today’s GDP figures will result in a delay to the next consumption tax hike.