The downward slide in Japanese share prices reversed on Friday after new economic data showed a surprisingly sharp rise in industrial production and continued success in the battle with deflation.
Seasonally adjusted consumer prices rose 0.2% nationwide in April, the first monthly increase since December, while core consumer prices excluding food and energy are up 1.2% during the past three months, according to a note from Klaus Baader, an analyst at Societe Generale. In Tokyo, which reports data more quickly, the May inflation numbers also record a slight rise in prices.
“Deflation may be history,” wrote Baader on Friday.
Industrial production showed an even...