Japan slows to near-zero growth

Second quarter GDP growth decelerated to 0.3% qoq.

Exports led the decline as a flagging global economy and a punishingly strong yen discouraged export demand.

Here's more from BBVA:

Today, Japan's data showed that the economy slowed in the second quarter to 0.3% q/q (BBVA: 0.2% q/q; Consensus: 0.6% q/q), after expanding by 1.3% q/q in the first quarter. In trade, exports growth was poor due to a combination of the global downturn and the strong yen, leading to a -0.1 ppt contribution to growth. Meanwhile, on the domestic demand side, investment and public spending added 0.2 ppt and 0.1 ppt to quarterly growth, as a result of post-quake reconstruction spending. Looking ahead, we expect Japan's economy to remain muted in the second half year, as the effects of post quake reconstruction subside. On the balance, however, we are maintaining our growth forecast for Japan for 2012 and 2013 of 2.4% and 1.4% respectively. With respect to Japan’s monetary policy, today’s lower than expected Q2 GDP outturn, together with recent weak economic indicators, is likely to increase pressure on the BoJ for further easing.