Framing Analysis
Capital spending in Japan increased 1.6% year-on-year in the second quarter after a 0.05% gain in the first quarter, while preliminary GDP growth slowed to an annualized 1.1%. Corporate sales rose 5.9% and recurring profits climbed 24.6% to 44.7 trillion yen. U.S. Treasury Secretary Scott Bessent stated expectations that Japanese authorities would act to strengthen the yen.