Japan's GDP experienced a recovery in the third quarter, growing by 0.3% year-on-year. This growth follows two consecutive quarters of decline, with a revised 1.1% contraction in the second quarter.

The Bank of Japan recently raised interest rates from 0.1% to 0.25%, the highest level since 2008, and has indicated the possibility of further rate increases if economic conditions align with expectations. On a quarter-on-quarter basis, GDP increased by 0.2%, matching Reuters poll estimates, while annualized growth reached 0.9%, surpassing the anticipated 0.7%. However, this represents a significant drop from the previous quarter's 2.9% rise.

Prime Minister Shigeru Ishiba expressed skepticism about the need for further rate increases after discussions with BOJ Governor Kazuo Ueda, contrasting earlier statements that supported the BOJ's policy direction. Following the GDP announcement, Japan's benchmark Nikkei 225 index rose by 0.76%, and the broader Topix climbed 0.64%. The Japanese yen weakened by 0.16% against the U.S. dollar, trading at 156.51, amid significant volatility in the currency market during the third quarter, prompting warnings from finance ministry officials regarding excessive speculation.