Ultima Markets[Market Hotspot] Japan Leveraging Capital Expenditure to Avoid Economy...

Japan's Gross Domestic Product(GDP) Last year's third quarter saw a decline 0.8%In the fourth quarter, there was a reversal of the declining trend and a quarterly increase0.1%, better than the initial report's predicted decline0.1%。 Although only a slight increase, it helped Japan avoid the expected recession. It is interesting that the support is due to the unexpected increase in capital expenditure2.0%The data for the third quarter decreased 0.1%。

In addition, the trade surplus has also brought positive impacts, leading to export growth2.6%Stronger than just growing1.7%Import. However, personal consumption, which accounts for more than half of the economy, unfortunately shrank to negative levels for the third consecutive quarter0.3%。 Domestic demand is suppressed due to price and global economic uncertainty.

The decrease in government expenditure is greater than expected, resulting in a decrease0.2%, rather than expected 0.1%。 Previously, government spending grew in the third quarter0.3%。 Similarly, public investment has significantly shrunk 0.8%Beyond expectations 0.7% Decline. Public investment in the third quarter has emerged 1.0% The decline of.

The latest statistical data reinforces speculation that the Bank of Japan may start raising interest rates in the near future, with some investors betting3Monthly interest rate hikes. Bank of Japan member Shunko Nakagawa recently stated that the economy is expected to achieve a virtuous cycle of inflation and rising wages.

Due to the lack of urgent interest rate cuts from the Federal Reserve, the US dollar and US Treasury bond yields have decreased, thereby helping the Japanese currency appreciate. The exchange rate between the Japanese yen and the US dollar has strengthened, breaking through147Da Guan, setting the highest exchange rate in over a month.

(GDPJi Growth Rate, Japanese Cabinet Office)

(Monthly chart of USD/JPY)

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