Japan GDP stirs central bank easing speculation

TOKYO: Japan’s economy shrank less than initially thought last quarter, revised data showed on Tuesday, but the still-disappointing figures rekindled speculation over more central bank stimulus aimed at propping up Tokyo’s faltering “Abenomics” growth blitz.The Cabinet Office said the world’s number three economy contracted by 0.3 percent in the April-June quarter, slightly less than an initial estimate of a 0.4 percent contraction—and beating market expectations of a 0.5-percent decline.

But economists warned over an inventory buildup at firms across the nation and pointed to a decline in capital spending, stirring concerns about Japan’s prospects.