Japan economy grew faster than estimated, revised data show

Japan's economy expanded more than initially estimated in the second quarter, with revised data showing a 0.4% growth in the three months to June, according to the Cabinet Office's release on September 8. This surpassed the 0.3% expansion reported in preliminary figures. The Bank of Japan's interest rate hike, a topic of discussion following US Treasury Secretary Scott Bessent's support for Japan's "decisive market and monetary steps," may have played a role in this upward revision.

Despite this, private consumption and corporate investment remained lackluster, although they were better than initially indicated. Imports also fell short of the preliminary estimate, contributing to the GDP revision. Meanwhile, Prime Minister Sanae Takaichi is reportedly planning a Cabinet reshuffle, though no significant changes are anticipated.

The yen has been under pressure due to high oil import costs and concerns about Takaichi's spending plans, but it has seen a boost from rate hike speculation and is now at a 2026 high.