Japan's Q2 GDP growth slows and misses estimates.

Japan's economic expansion decelerated in Q2 to an annualized 2.6% from 3.8% in Q1 and undershot consensus of 3.6%. Growth was dragged down by an unexpected drop in capex, although private consumption topped forecasts. The reading has intensified the debate about a proposed increase in sales tax. "There is no need to raise the sales tax in a hurry," says Koichi Hamada, a key adviser to Prime Minister Shinzo Abe. Doing so "might hurt the economy."