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Japan second-quarter GDP shrinks less than expected on inventory gains

© Reuters. A worker rides a bicycle past containers at a port in Tokyo

TOKYO (Reuters) - Japan's economy shrank less than expected in the second quarter although capital expenditure fell more than originally forecast, revised data showed, keeping policymakers under pressure to do more to energize the fragile recovery.

Analysts expect any rebound in July-September growth to be feeble as factory output unexpectedly fell in July and China's slowdown dampened prospects for a...