Japan growth data revision adds to recovery hopes

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Japan has revised up its growth numbers for the first three months of the year, adding to hopes of a recovery in the world’s third-largest economy.

The economy grew 1% between January and March, compared to the previous three months, indicating an annualised growth of 4.1%, the cabinet office said.

That is up from the initial estimates of 0.9% quarter-on-quarter growth.

The data follows a series of aggressive policy moves aimed at spurring growth in Japan’s economy.

The upward revision in the growth numbers helped lift investor morale, with the Nikkei 225 index jumping nearly 5%.

The surge was led by Japan’s major exporters, with shares in Toyota rising 8.5% and Sony up by nearly 7%.

“The overall impact of the the policy measures introduced by Prime Minister Shinzo Abe and the Japanese central bank is now starting to be felt,” Martin Schulz of Fujitsu Research Institute told the BBC.

Market sentiment was also boosted by the drop in the yen’s value.

The Japanese currency was trading close to 98.26 yen against the US dollar in Asia on Monday, down from the 94.98 yen high hit on Friday.

To continue reading article, please go to http://www.bbc.co.uk/news/business-22837158.

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