Japan Capital expenditure for Q1: +4.3% y/y (expected -5.0%)

Japan data from January to March 2020

• Capital spending +4.3% y/y vs. expected -5.0% y/y, prior -3.5%
• Capital spending excl. software +3.5% y/y vs. expected -5.5% y/y, prior -5.0%
• Company profits -32.0% y/y vs. prior -4.6% y/y
• Company sales -3.5% y/y vs. -6.4% y/y prior

Some handy beats for capex in Q1. Looking ahead, that epic drop in company profits does not auger well for Q2 capex. Profits biggest drop since Q3 of 2009.

Yen barely moved on the data release