Japan answers bears with strong data

Abenomics won another victory on Friday when inflation and industrial production data both showed strong improvement.
Shinzo Abe
Shinzo Abe

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...

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