Japanese economy growing quicker than expected

<p>New figures show the Japanese economy grew faster than expected in the first quarter of 2013.</p>

The Japanese economy grew at a faster rate than expected in the first three months of the year, according to new figures.

Government data shows the country's economy expanded at an annualised rate of 4.1 per cent in the first quarter of 2013, significantly higher than the original estimate of 3.5 per cent.

Furthermore, Japan's current account surplus had doubled at the end of the three-month period compared with a year earlier, standing at 750 billion yen (£4.9 billion) in April, according to Ministry of Finance figures.

Japanese equities responded to the news by rising sharply, with the Nikkei 225 index closing 4.9 per cent up at 13,514.20, helping overcome last week's falls.

The index struck a two-month low on Friday (June 7th), partly as a result of investor uncertainty over the US economy.

It had previously reached a 5.5-year high in May, underlining the volatility still affecting Japanese shares.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.