Japan Q1 GDP likely revised higher; C/A balance remained strong

Japan will release final Q1 GDP data on 8 June. Q1 GDP is expected to be revised slightly higher to 0.7% q/q on a seasonally adjusted basis (2.6% annualised) versus the preliminary reading of 0.6% q/q (2.4% annualised), expects Standard Chartered. Q1 business capex rose 7.3% y/y or 5.8% q/q, much better than consensus. As the figure will be used to calculate GDP, it might lead to an upward revision in private investment. 

"The current account (C/A) balance is also due out on 8 June. The C/A surplus likely declined to JPY 2.4tn in April from JPY 2.8tn in March due to the trade deficit. Still, this would be the highest April reading historically, if the C/A balance was as high as expected. The services balance likely improved significantly in Q1 due to a rise in foreign visitors, and primary income inflows probably remained strong", according to Standard Chartered.