The Japanese economy grew faster than expected in the second quarter, expanding at the fastest pace in more than two years. Figures published this morning show that Japan, the world's second largest economy, even outperformed both the eurozone and the US in the three months to June. Japan's GDP rose a revised 1.0pc in the quarter, faster than the initial estimate of 0.6pc, the Cabinet Office said. On an annualised basis, growth was revised up to 3.9pc from 2.3pc. Capital spending, which accounts for about 10pc of the economy, increased by 4.7pc in the second quarter, far more than the 1.3pc gain initially reported. Personal consumption, which supports 60pc of the economy, rose by 0.4pc, revised upward from a preliminary 0.3pc.
But the Tokyo stock market failed to react to the news, with the recent equity rally winding down following losses on Wall St overnight. The Nikkei 225 index closed down 65.72 points, or 0.6pc, at 10,856.32 - retreating from yesterday's 14-month high - with the broader Topix index of all first-section stocks slipping 1.73 points to 1,043.98. //www.fxcentre.com