Nikkei sinks again as Japan GDP misses expectations

Japan Q2 GDP has come in well short of expectations as annualised growth of just 2.6% deals a blow to 'Abenomics' advocates.

With the figures seen as the latest test of Prime Minister Shinzo Abe's stimulus-driven policies, economists had predicted annualised growth of 3.6% in Q2, and quarterly growth of 0.9%. But an annualised figure of 2.6% and quarterly rise of 0.6% undershot those forecasts, sending Japan's Nikkei index down as much as 1.1%. A falling yen and rising markets meant exports rose by 12.5% and private consumption rose by 3.1%, according to the latest data. Business investment, however, seen as crucial to any sustained economic bounce, fell by an annualised 0.4%. Q1 GDP figures were also...