Japan's economy grew at its fastest pace in over two years… led by car and electronics exporters in the surprising second quarter expansion.
Economists believed Japanese wouldn’t be able to keep their sales up after a full half year of growth… but after hundreds of billions of dollars in stimulus, Japan is likely to avoid a return to recession.
Numbers on Monday showed Japan's growth exceeding the U.S. and Europe.
But Japanese officials say economic conditions remain severe.
In an embarrassment for the new government, the Japanese trade minister disclosed the 1.2 percent growth numbers to oil industry executives before the official release. He has since apologized for the early announcement.
In the markets electronics giant Hitachi and Mitsubishi UFJ fell sharply on reports of imminent fundraising.
Sources told Reuters Hitachi will raise up to $4.5 billion in share and bond issuance, while MUFJ would issue $11 billion in new shares to meet stricter capital requirements.
The U.S. dollar, meanwhile, drifted lower in Asia, as U.S. President Barack Obama began a visit to China.
