Japanese GDP growth surged to its fastest level in over two years in Q1, accelerating to an annualized 5.9% from 0.3% in Q4 and breezing past consensus of 4.2%.
On quarter, GDP +1.5% vs +0.2% +1%.
The economy was boosted by personal consumption soaring an annualized 8.5% as shoppers rushed to make purchases prior to sales tax rising to 8% from 5% on April 1. Businesses lifted capex 4.9%, while they also increased output, capex, jobs and overtime pay.
The downside of the strong overall print is that the economy is expected to pull back in Q2.
The Nikkei is -0.75% as Sony weighs on sentiment following its poor earnings reports, while the USD-JPY is flat at ¥101.93. (PR)