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Economic recovery helping to ease fiscal worries (May 10)

The continued strength of the economic recovery is one important reason why market confidence in Japan’s ability to finance its huge public debt has remained fairly high. GDP appears to have grown at a rapid pace again in the first quarter and the early indications for the second quarter are encouraging too. However, this has not been enough to insulate Japanese equities from the wider fall-out from the fiscal crisis in Greece.

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