Japan's economy expands more than expected in second quarter as net exports remain resilient

Japan's trade deficit narrowed from April to June compared to the first quarter, according to data from the country's trade ministry.On a year-over-year basis, Japan's GDP expanded 1.2% in the second quarter, falling short of the first quarter's 1.8% growth.The country's GDP grew 1% on an annualized basis, beating the 0.4% rise expected by the Reuters poll.ing the data release, the benchmark Nikkei 225 was up 0.59%, while the yen strengthened 0.1% to trade at 147.6 against the dollar.Stock Chart IconStock chart iconThis comes as Japan struggled to cope with an uncertain trade environment in the second quarter, with the country only reaching a trade deal with the U.S. on July 23.The deal sees Japan face a 15% blanket tariff on all exports to the U.S., including automobiles.Throughout the second quarter, Japan was spared the 24% tariff that was announced on "Liberation Day," but had to face 25% duties on its key automobile sector.Auto exports to the U.S. are a cornerstone of Japan's economy, making up 28.3% of all shipments in 2024, according to customs data.After its July 31 meeting, the Bank of Japan upgraded its forecast for the country's economy to grow 0.6% in its 2025 fiscal year, running from April 2025 to March 2026

This was higher thanHowever, the central bank also cautioned that trade and other policies globally would lead to a slowdown in overseas economies, as well as a decline in domestic corporate fits.— This is news, please check back for .