 Japanese stocks rose on the news of economic growth |
Japan's economy grew at a faster pace than expected in the July to September period, helped by strong exports and greater investment by firms. The world's second largest economy grew at an annualised rate of 2% during the period, Cabinet Office figures showed.
Analysts said the data indicated the economy was still growing steadily and meant there was a chance of an interest rate rise early next year.
In July, Japanese rates rose for the first time in six years to 0.25%.
Steady performance
The growth figures, which revealed that the economy expanded by 0.5% in the quarter compared with the previous three months, quelled any fears that Japan's economy could be slowing.
Exports rose 2.7% in the quarter, helped by the weak yen, while capital investment grew by 2.9%.
This offset weakness in domestic consumption, which fell by 0.7% compared with the previous quarter.
"Japan is like a jet that is flying steadily, although at a lower altitude than in the past," said Massaki Kanbni, chief Japan economist with JP Morgan.
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