Reported about 1 year ago
Japan's official report for the first quarter of this year (January to March) showed a revised economic contraction less severe than initially estimated due to an upward revision in capital spending and inventory data, which market analysts believe will provide mild support for a potential rate hike by the Bank of Japan this year. Despite the prolonged weakness of the yen and uncertain prospects for the automotive sector this quarter, analysts anticipate a rebound in the Japanese economy following the bottoming-out in the first quarter of the year. The Bank of Japan is expected to scale back its bond purchases at this week's meeting to slow the monthly pace of purchases by around 6 trillion yen and could raise the benchmark interest rate range to 0.15-0.25% in July, leading to a rise in Japanese bank stocks and a weakening yen exchange rate against the US dollar.
Source: YAHOO