• Japan’s economy grew at an annualized pace of 3.5% in the first three months of the year, & the most in a year
  • Private consumption up 0.9%, higher for a second consecutive quarter, reflecting the better consumer mood
  • Exports beat expectations, making ‘a net 0.4% net contribution to GDP’
  • Its a good start but there have been so many false dawns for the Japanese economy
  • We still await the “third arrow” of Abe’s growth strategy—a package of deregulation and reform measures aimed at fixing underlying structural problems

Note this, though:

Capital spending disappointed, however, falling 0.7 percent in the quarter, defying expectations of a 0.7 percent increase, in a sign that despite improved business sentiment Japanese companies remain cautious and hesitant to boost investment.

More discussion at the Wall Street Journal: Japan Economy Sees Solid Growth (gated – try a a Google news search using the headline)

or Bloomberg (not gated): Japan Economy Grows More-Than-Forecast 3.5% in Boost for Abe

Reuters: Japan’s first-quarter growth beats forecasts as first stimulus effects felt

We’ve had very little movement from the yen in the wake of the release. USD/JPY orders here.