Japan's Q2 GDP Growth Revised Higher, Bolstering BoJ Rate Hike Case

Japan's economy grew at a faster clip in the second quarter than initially estimated, according to revised figures from the Cabinet Office. The country's gross domestic product expanded by 1.4% from the previous quarter on an annualized basis, up from an earlier estimate of 1.1%. This revision was driven by business investment, which fell 0.9% from the previous quarter compared with an initially reported 1.2% decline.

The stronger-than-expected growth supports the Bank of Japan's assessment that the economy is developing in line with its outlook, potentially paving the way for a widely expected interest-rate hike next week. Swap contracts heavily point to a move at this time, although the BOJ has yet to confirm its intentions.