Following last quarter's biggest miss in 18 months, Japanese GDP surged to its biggest beat in 3 years. This is the same kind of reflexive (and at that time entirely unsustainable) bounce that was seen after the Tsunami in 2011. Of course the big problem is that this removes much of the crutch for further QQE in July that so many have been hoping for. The initial pop in the Nikkei has faded rapidly into selling pressure and USDJPY is also losing ground... good news is once again, terrible news for equity investors.
GDP bounces just as it did after the Tsunami following a big miss... it seems this level of bounce has been unsustainable for the last 14 years...
[3].
and the full breakdown...
[4]
The reaction
[5]
source: http://www.esri.cao.go.jp/jp/sna/data/data_list/sokuhou/gaiyou/pdf/main_1.pdf [6]