Japan’s economy outperformed forecasts as business spending and net trade helped fuel a third straight quarter of growth that will keep the Bank of Japan on track for further interest rate hikes. The yen strengthened. -GDP expands at annualized clip of 2.8%, giving yen a boost -Consumption ekes out a gain despite inflation strain Institutional investors turned the most positive on the yen since March 2021 as speculation mounts that the Bank of Japan will raise interest rates again. The yen has been the best performer against the dollar this year among its Group-of-10 peers, a contrast to its consecutive declines over the past four years. Still, the yen faces headwinds from Japan’s retail investors who are hungry for overseas stocks, as well as the nation’s negative real interest rates.