Japan economy’s contraction a blow for ‘Abenomics’

TOKYO: Japan’s economy contracted last quarter, official data showed on Monday, boosting speculation the central bank will be forced to unleash more stimulus as Tokyo’s “Abenomics” growth blitz stumbles.

The world’s third-largest economy shrank 0.4 percent in the three months to June—or 1.6 percent on an annualized basis—due to weak consumer spending at home and slowing exports after two consecutive quarters of growth.