BOJ Rate Hike Bets Intensify as Japan Economy Shows Resilience

Japan's economy expanded at an annualized rate of 1.4% in the second quarter, exceeding preliminary estimates and those of economists polled by Reuters. The revised gross domestic product (GDP) figure is up from 1.1%, which was initially reported.

The upward revision was largely driven by capital expenditure, which declined less than expected, at 0.9%. This beat the preliminary estimate of a 1.2% contraction and economists' forecast of an 0.8% decline.

Private consumption remained unchanged from the previous quarter, aligning with initial estimates. External demand contributed 0.5 percentage points to overall GDP growth, while domestic demand reduced growth by 0.1 percentage point, an improvement over the initial 0.2-point drag.