In today’s briefing:
- Japan: The End of Japanification as Rising Nominal GDP Spurs Virtuous Circles
- CX Daily: China Q3 GDP Beats Market Estimates Amid Pickup in Consumption
- State-Owned Companies Buy Back Shares to Boost Investor Confidence
Japan: The End of Japanification as Rising Nominal GDP Spurs Virtuous Circles
- Ending a quarter-century of stagnation, Japan’s nominal GDP rose 3.04% in the year to Jun’23, with per capita nominal GDP up 3.51% and per capita real GDP 1.91%.
- With the decisive defeat of deflation, core CPI inflation was 2.8%YoY in Aug’23, enabling 21 consecutive months of YoY wage growth. The fiscal deficit likely declines to 3.5% of GDP.
- Rebounding exports will restore a trade surplus this quarter, bolstering the current account surplus to 2.7% of GDP this year and 3.3% next. Stay overweight Japan.
CX Daily: China Q3 GDP Beats Market Estimates Amid Pickup in Consumption
- GDP /: China Q3 GDP beats market estimates amid pickup in consumption
- Belt and Road Initiative /: Xi vows to further open up China at Belt and Road Forum
- Buybacks /: State-owned companies buy back shares to boost investor confidence
State-Owned Companies Buy Back Shares to Boost Investor Confidence
- About 50 Chinese state-owned companies are trying to bolster investor confidence by rolling out share buybacks or plans by big stockholders to expand their holdings after a series of other measures to prop up the stock market fell short.
- China’s benchmark CSI 300 Index has dropped more than 6% this year, despite supportive government policies that included halving the stamp duty on stock trades and lowering the minimum ratio for stock purchases through margin financing in August.
- The index gained 0.35% Tuesday.
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