Responding to the Q2 GDP report, Japanese Economy Minister Yasutoshi Nishimura noted that the economy is showing signs of recovery.
Additional quotes
“Downward revision in capex underscores worsening corporate profits, uncertainty on outlook.”
“Some positive corporate spending to adapt to a new lifestyle is seen, such as capex to boost production capacity, spending on telecom equipment.”
“Household income is rising so the economy likely to continue recovering but must watch impact on the renewed rise in infection numbers, hot temperatures on consumption.”
The upbeat comments come despite the disastrous GDP numbers, which showed the economy contracted 28.1% in the April-June quarter vs. a 27.8% contraction seen in the preliminary readout.
Market reaction
USD/JPY holds the higher ground above 106.00, benefiting from the disappointing Japanese GDP release.
At the time of writing, the spot trades better bid around 106.30.
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