Risk aversion spurred by Japan's Q1 GDP data The yen strengthened in early trading

Jin10 Data reported on May 16 that during early trading, the Japanese yen strengthened against other G10 currencies and Asian currencies, as market risk aversion may have been stimulated by Japan's earlier release of first-quarter GDP data. Preliminary data from the Japanese government shows that Japan's real GDP fell by 0.2% in the first quarter compared to the previous quarter, indicating that the risk of a technical recession is becoming apparent. Krishna Bhimavarapu of State Street Global Advisors stated that this data has increased pressure on optimistic sentiment as Japan prepares to deal with tariff impacts. However, "We expect to reach a reasonable agreement with the United States in the coming months, which should alleviate the effects."