Add Japan to the Better-Than-Expected Growth Column

Rapidly growing neighbors as well as government stimulus programs helped Japan return to growth much more quickly than anyone had expected. Japan's Q3 growth surged sharply at a 4.8% annualized clip. It was Japan's second consecutive quarter of growth -- accelerating from the 2.7% annualized rate of Q2.

The good news for Japan early Monday comes on the heals of solid growth reports from the U.S. and Europe where GDPs have also started expanding again. Japan's report adds additional credibility to the notion that a broad global recovery is solidly under way.

The news will likely add fresh rally fuel to Wall Street for its open on Monday as Y/Y stock market gains continue to shine.

Comments

[test213:]

Yes, that was a great positive surprise to see the world's 2nd largest economy grow that much. It confirms the V-shaped recovery scenario is emerging.

test213
admin at invetrics.com

Nov 16 07:26 AM

[Ryu Mei Co:]

Well, it was better than expected and it was a surprisingly good news too. But how come Nikkei didn't put up a stronger rally ? And when our best companies like Nintendo and Toyota were not reporting strong numbers, how can we be so positive? Yen is at 89 vs USD, and with USD weaker and weaker everyday, how can export be good for the economy? Don't be a fool by a single good data.

Nov 16 09:34 AM

[Mad Hedge F...:]

wdu As much as I want to find a trade in Japan and therefore have an excuse to go there again, my searches have recently come up empty. With America maintaining its lead in innovation and the creation of new business models, and China taking over the world’s low end manufacturing, it is hard to see a future for Japan. Can a country of 127 million live only off of the high end manufacturing of luxury cars, video games, and electronics? The country is increasingly looking like a “has been” emerging market. During my career, I watched GDP growth rates fall from a white hot 10% in the sixties, to 4% in the seventies and eighties, to 1% in the nineties and the early 21st century. Are we flat lining at 0% in the teens? That leaves fertile ground only for stock pickers who are willing to do the local spade work to find one hit wonders like Toyota and Fast Retail. That is a job best left to country specialists, like my old friend, 40 year veteran Ed Merner, who runs the Atlantis Japan Growth Fund (LSE-AJG) traded in London, which has shot up a sizzling 80% in six months.

Nov 16 11:57 AM