Sunday, August 16, 2009
GDP & Japan: Imperfect Together
Asian equity markets are not responding kindly to the latest economic data out of Japan. Second quarter GDP growth came in at 3.66% (annualized), the market was looking for a number closer to 3.9%.
This means that economic activity in Japan is where it was in December, 2004. Yep, no growth in over 4 years. No wonder why the Nikkei is down over 2% and Chinese stock indices are down between 2% and 3%.
U.S. equity futures are trading lower as well, pointing to a drop of about 0.4% at this time.