Today in Japan, was published a large block of macro-statistics. GDP data showed the worst result in more than 5 years. Thus in the second quarter, GDP fell by 1.8%, or by 7.1% per annum. Analysts also expected the decline by 1.8%. Experts point out the negative effect of increasing the sales tax by 3% to 8% in April this year. The next increase is scheduled in October 2015. At the same time the country's balance of payments surplus fell to 0.10 trillion. against the forecast of 0.18 trillion.
Tomorrow increase in volatility is expected in connection with the publication of minutes of the previous meeting of the Bank of Japan and the release of data on consumer confidence and orders for machinery equipment. We expect continued reduction of the Japanese yen, but keep medium-term positive outlook for the country's stock market, though declining growth potential.