"It's highly likely that the Japanese economy will contract in the third quarter"
- Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management
Industrial production in Japan fell less than expected in August, the Ministry of Economy, Trade and Industry said on Friday. Nation's industrial production showed signs of recovery, posting a final reading of -1.0%, up from -1.2% in July. Analysts had predicted Japanese industrial output to fall -1.2% last month.
"It's highly likely that the Japanese economy will contract in the third quarter and its growth will probably stagnate in the fourth quarter," said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management in Tokyo.
"Policy stimulus, including an extra budget, will be the only engine to fuel Japan's growth for the time being."
The Nikkei 225 Stock Average surged 1.83 per cent, or 164.24 points, to 9,159.39. The broader Topix Index advanced 1.70 per cent, or 12.65, to 756.88.
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