Tokyo, Japan (BBN)-Japanese stocks are rising after data showed the country’s economy dodged a recession and grew by 1.7 per cent in the first three months of the year.
The better-than-expected growth rate came after higher government spending helped offset weakness in business investment and exports, reports BBC.
Capital expenditure fell by 1.4 per cent during the quarter, showing that businesses remain reluctant to spend.
After opening lower, both the Nikkei 225 and broader Topix are up about 1 per cent.
However, analysts are concerned about the outlook for consumer spending, which accounts for about 60 per cent of GDP.
That may take a hit if Prime Minister Shinzo Abe moves to increase the country’s sales tax to 10 per cent from the current 8 per cent.
Japan’s Nikkei newspaper reported this week that Mr Abe plans to postpone the move and will announce his decision after the G7 meeting later this month.
Rest of Asia
Other stock markets in Asia are trading in negative territory ahead of the release of the US central bank’s meeting minutes later on Wednesday.
Investors are looking for guidance on what and when the Federal Reserve’s next move is going to be.
Many investors are now predicting the Fed may raise interest rates at its June meeting following positive economic data released last week.
Hong Kong’s Hang Seng has opened 1.3 per cent in the red and the Shanghai Composite is 0.3 per cent lower.
Australia’s S&P/ASX 200 is down 0.4 per cent and New Zealand stocks have lost 0.2 per cent.
South Korea’s benchmark Kospi is falling 1.1 per cent.