Japan's economy grew faster than expected in the second quarter due to a rise in private consumption, preliminary data from the Cabinet Office showed.

Japan's GDP grew 1.9% on an annualized basis in the April-June period, following a revised 0.9% annualized contraction in the first quarter.

On quarter over quarter basis, the GDP increased 0.5%.

Private consumption rose 0.7%, rebounding from a revised 0.2% fall in the previous quarter.

External demand - or exports minus imports - subtracted 0.1 percentage point from growth.

Japan's core machinery orders, a leading indicator of capital expenditure, tumbled in June at the fastest pace in six months, adding to fears about the strength of business investment.

The yen was up 0.19% to 110.87 per dollar as of 1 p.m. in Tokyo, while the benchmark Nikkei 225 index was down 0.52% after the initial GDP estimates, which are still subject to revisions, were released.