It appears that the Japanese economy is snapping back in a v-shaped formation following the devastating earthquake in March.
In his morning note, BTIG’s Dan Greenhaus writes:
…we would note two encouraging overseas economic data points. First, South Korea’s current account surplus widened to the highest level in seven months. Bloomberg notes an important reason for the widening is an increase in car shipments. This is the just the latest sign that auto production and shipments are returning to normal and follows most importantly comments from TM that they expect production to be fully on line by September while Carlos Ghosn suggested that Nissan production in Japan is almost fully normalized.
Secondly, retail sales in Japan fell much less than expected, declining “just” 1.3% YOY in May, less than the 2.2% drop expected and the prior month’s 4.8% decline. This reflected a mum gain that was twice expectations suggesting that consumption in Japan is rebounding nicely and may be doing so at a more rapid clip than some suggested.
This chart of Japanese retail sales growth is distinctly v-shaped.
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