JAPAN

The strong 1Q growth momentum is unlikely to be sustained into the rest of 2012 as exports falter while capex contribution remains weak for the next few quarters.

    BoJ remains committed to quantitative easing and is likely to do more in the near future especially with two new pro-monetary stimulus members on its board

    Even as more monetary stimuli is expected from the central bank, the strength of the Japanese yen is likely to remain intact in 2012 on the back of safe haven demand due to the on-going European debt crisis