Overview

• Revised Cabinet Office data show GDP grew at a 2.2% annualised pace in April–June, or 0.5% quarter on quarter.
• Private consumption rose 0.4% and capital expenditure increased 0.6%, with the investment figure revised down from the initial estimate.
• Prime Minister Shigeru Ishiba resigned on Sunday, introducing political uncertainty that could complicate policymaking.
• The yen weakened after the resignation, with USD/JPY quoted around 148.10 as traders assessed the risk of slower BOJ tightening.
• Tokyo and Washington formalised lower tariffs on Japanese auto imports, offering export support as markets look to July–September GDP and upcoming Chinese trade data for confirmation of momentum.