Business is picking up. Capital investment is on the increase, labor market is expanding and consumer spending is coming back. Later this year the Japanese economy will step up the tempo of recovery and secure more than 2% annual growth rate.
Serious deflation has tortured Japanese companies for more than a decade and it has made them less attractive than US competitors in point of possibility and profitability. The difference has influenced the stock markets of both countries.
However business performance of Japanese companies has been steadily recovering, giving some of them record high profit. It is pushing up their stock prices. Yen's depreciation is a big help for them.
The benchmark short-term money market rate staying at 0.5% is no wonder. The financial market enjoys a plenty of money. It is no time to say raise or lower the rate.
French voters have chosen the way to survive global competition and vitalize the economy.
Japan and France have maintained very good relations in various fields such as politics, economy and culture. The unbreakable partners will be sure to fasten the strong ties with the appearance of the new French leader.