Japan Economy Slows to 0.3% Growth in Q2

Japan's economy has slowed down to 0.3% growth in the April-June quarter, falling short of the expected 0.5% growth according to official data released on Monday.

The weaker-than-expected reading came after capital expenditure fell and missed market expectations, while private consumption was flat against forecasts that it would grow.

Higher oil prices have swelled Japan's import bill and pushed up consumer prices, a situation worsened by the weak yen and one that has eroded Prime Minister Sanae Takaichi's popularity.

Taro Kimura at Bloomberg Economics said Monday's figures 'weaken the case' for a September increase in interest rates, which markets had increasingly priced in.