Japan GDP clears estimates as growth rebounds despite sluggish inflation

Japan's GDP largely came in better than expected, and the first quarter's GDP contraction has seen a healthy rebound in 2018's second quarter.

Seasonally-adjusted GDP for Q2 clocked in at 0.5% versus the forecast 0.3%, clearing the previous reading of 0.2%, while annualized GDP for Q2 clocked in at 1.9% compared to the forecast 1.4%, while the previous showed a decline of 0.6%.

Nominal GDP for the second quarter also came in at 0.4% (forecast 0.2%, last -0.4%), while GDP Consumer Spending printed at 0.7% (forecast 0.2%, last -0.1%) and GDP Business Spending came in at 1.3% (forecast 0.6%, last 0.3%). 

Despite the positive GDP reading, inflation still remains far, far below the Bank of Japan's desired targets, and the USD/JPY is back softly, but still holding near the 111.00 technical handle.