“Since the U.S. presidential election, the upward pressure on the yen has receded. This must have helped ease the worries of the government,” Toru Suehiro, economist at Mizuho Securities, told the Wall Street Journal reports.
Meanwhile, the Japanese economy grew at a faster-than-expected 2.2% pace in the third quarter, its third straight quarter of expansion.
The growth was driven by exports, which increased 2% compared to the prior quarter. With the Japanese yen now depreciating against the U.S. dollar, export growth may continue to expand.
“The Abe government has been trying to achieve domestic-led growth, but the third quarter GDP shows that the growth is reliant on exports,” Shunsuke Kobayashi, economist at the Daiwa Institute of Research, told the WSJ.
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