It is expected to continue to do so, as a front-loaded increase in demand prior to the consumption tax hike is likely to occur. Recently, stock prices have been rising and the yen has been depreciating.
A number of factors have been pointed out as the background to these developments, including (1) abating tensions in the global financial markets due to a settling down of the European sovereign debt crisis for the time being and the reduced threat of the fiscal cliff; (2) expectations for the outlook for the U.S. and Chinese economies; and (3) the widening of Japan’s trade balance deficit and a sharp fall in the current account surplus.