Q1 GDP 1.8 annualised vs initial 2.0
Capex helps upward revision to GDP
Rebound seen this quarter but risks remain

TOKYO, June 10 Reuters Japan39;s economy contracted less than initially reported in JanuaryMarch on upward revisions to capital spending and inventory data, lending modest support to the central bank39;s plans to raise interest rates again this year.

Analysts expect the Japanese economy to have bottomed out in the first three months of the year, although a stubbornly weak yen and disruptions at major automaker plants continue to cloud the outlook for the current quarter.

Still, the revised GDP results made it easier for the Bank of Japan BOJ to feel encouraged about future rate hikes as it can assess capital investment is picking up even by a little bit, said Kohei Okazaki, senior economist at Nomura Securities.

Japan39;s GDP shrank a revised 1.8 annualised in the first quarter from the previous three months, Cabinet Office data showed on Monday, a smaller decline that economists39; median forecast for a 1.9 contraction and a 2.0 decline in the preliminary estimate.

The revised figure translates into a quarteronquarter contraction of 0.5 in priceadjusted terms, unchanged from the initial reading issued last month.

RATE HIKES

The revised GDP data comes on speculation the BOJ may discuss cuts in its Japanese government bond JGB purchases at its policy review this week as part of efforts to unwind monetary stimulus to curb yen weakening.

Investors are…