Japan's Q1 GDP surprisingly strong

Japan's preliminary real Q1 2016 GDP data came better than expected, at 0.4% q/q vs 0.1% expected based on Reuters poll, with the Q1 annualised GDP at +1.7 pct, against a Reuters poll of +0.2%, mainly due to firm exports and a boost from the extra day from the leap year, Reuters reports.

While in the past poor Japanese data has been attributed to buying opportunities in Japanese stocks in anticipation of further BOJ action, the fact that the Eurozone and US are starting to also show improving data, it might be the case that Japanese investors start to treat good news in Japan as a catalyst for further upside in equities, both locally and globally.

Other headlines

Jan-mar private consumption +0.5 pct qtr/qtr (poll: +0.2 pct)

Jan-mar capex -1.4 pct qtr/qtr (poll: -0.8 pct)

Jan-mar external demand contribution to gdp +0.2 pct point (poll: +0.1 pct pt)

Jan-mar domestic demand contribution to gdp +0.2 pct point

Jan-mar housing investment -0.8 pct qtr/qtr

Japan jan-mar gdp deflator +0.9 pct yr/yr