JAPAN

Surprising Good News: The government reported that the battered economy rebounded in the July-September quarter, confounding financial analysts’ expectations of a downturn. The data did not convince economists that a recovery was at hand but raised the prospect that policy makers may drag their feet over hoped-for stimulative action. The government’s Economic Planning Agency said that gross national product expanded at an annualized 1.5% in the third quarter after a 2% drop in April-June. Housing investment and consumer spending in particular were stronger than expected, economists said.