“Positive GDP data and market updates from Japan and China – Il Sole 24 Ore Finance”

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The Tokyo Stock Exchange begins trading on the rise, supported by the weakness of the yen which gives impetus to the export sector and despite the negative closure of the US stock indexes. At the opening, the Nikkei reference list marks an increase of 0.41% to 29,966.43 points, the highest since September 2021. On the exchange rate front, the phase of weakening of the Japanese currency against the dollar continues, at a value of 136, 30; on the euro at 148.20. Short-term data also arrives from the Rising Sun. Japan’s economy grew beyond estimates at the beginning of the year, thanks to the progressive acceleration of consumption in the services sector in the wake of the reopening of borders after the Covid-19 pandemic and despite the slowdown in exports.

In the period between January and March, the GDP recorded an increase of 0.4%, while on an annualized basis the growth is 1.6%. Between October and December, growth had been flat, while on a year-on-year basis, GDP had expanded by just 0.1%. For the full fiscal year 2022, the world’s third largest economy advanced by 1.2%. This is the second consecutive increase. Consumer spending, which makes up more than half of the country’s gross domestic product, showed an increase of 0.6% compared to +0.3% in the previous quarter, while business investments recorded a progress of 0, 9%, denying the expectations of a slowdown.

The contraction in exports, equal to 4.2%, weighed 0.3% on the growth of the economy between January and March. According to analysts, although an improvement in consumption in the services sector is expected, the slowdown in global demand, especially from Europe and the United States, will continue to limit the recovery’s durability. In this sense, the spending potential generated by the gradual recovery of tourists from China and the ongoing negotiations of Japanese companies on wage increases could represent a turning point.

Chinese shares slipped, extending losses from the previous session following disappointing economic data in April that prompted some economists to downgrade the country’s growth forecasts. China’s blue-chip CSI300 index lost 0.4% at midday, while the Shanghai Composite Index fell 0.2%. Hong Kong’s benchmark Hang Seng index fell 0.6%, while the China Enterprises Index lost 0.4%. Other Asian stocks remained subdued and the dollar hovered around five-week highs as investors looked risk-averse as US debt ceiling talks and a mixed batch of economic data weighed on sentiment .

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