Japan avoided a technical recession in the third quarter with the initial estimate of a contraction revised to an annualized growth of 1.0% from a preliminary reading of 0.8%.

The revision, larger than an average market forecast for a revision to a 0.1% gain, implied the Japanese economy was in better shape than initially predicted.

Cabinet Office reported capital expenditure was the main factor to the upgrade, revised up to a 0.6% increase from an initial decline of 1.3%.

Despite the evasion of inflation, policymakers will remain under pressure to beef up growth by injecting additional stimulus measures.

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