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Japanese Shares Breach 10,000 As Economy Shrinks Less Than Thought

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The world's second biggest economy contracted 14.2pc in the first three months of 2009, according to revised government figures, an improvement on the 15.2pc shrinkage reported last month.

Improved optimism of a recovery from the country's worst recession since the Second World War sent the Nikkei 225 index to 10,022.23 in the morning, breaking the psychologically-important 10,000 mark for the first time since October 8.

"Optimism about a recovery is increasing," said Ryuta Otsuka, strategist at Toyo Securities, told AFP. "Risk money which had fled to bond markets is beginning to return to stocks and commodity markets."

The new data said the economy shrank by 3.8pc in the January-March period against the previous quarter, less than the initial estimate of a 4pc fall.

However, the annualised 14.2pc drop was still Japan's worst on record.

Japan entered recession in the second quarter of 2008 as the tightening global economy led to a sharp drop in exports.

My optimism has certainly increased. 15.2% was catastrophic but 14.2% clearly means the end of the recession is here.

Buy a house, buy shares now your going to lose out if you don't.

The numbers don't lie it's not as bad as is being made out the recession has ended and we will not have a depression.

14.2% is not in depression territory and it barely constitutes a recession.

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BBC website also busy spinning more bad news as good news.

"Japan GDP shrinks at record pace"

Announces the Headline then we get:

"there have been brighter signs in recent weeks."

"People in Japan are starting to hope that the worst might be over."

"massive stimulus measures by Japan's Government, including cash handouts, are starting to have an effect."


Edited by Son of Fred

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The economies that have the hairiest cuts will also have the strongest recoveries and that's why I've invested in Japan. However the difference between 14.2 adn 15.2% doesn't seem like optimism as such.

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