Japan's economy shrinks by 0.4% in a blow for 'Abenomics' growth plan

The second quarter of the year saw output contract by 0.4% despite prime minister Shinzo Abe's huge stimulus programme to reverse years of poor growth

Japan's economy shrunk 0.4% in the second quarter of the year, official data showed on Monday, underscoring how the prime minsister's "Abenomics" growth programme has yet to grain traction.

Weak domestic consumption and slow exports weighed on the world's third largest economy, which shrank an annualised 1.6%, after posting growth in the previous two quarters, according to the cabinet office.

Related: After the Financial Times buyout, let's stop belittling Japan's success | Eamonn Fingleton

Related: Eight reasons why China's currency crisis matters to us all