The Japanese economy was dealt another blow overnight after gross domestic product figures showed output collapsing. Although the preliminary quarterly GDP number managed to beat estimates of a -0.50% contraction, printing at -0.40%, it is a far cry from the prior quarter’s 1.10% expansion. Moreover, the annualized figure shows the economy contracting at a -1.60% yearly pace, a vexing number for policymakers as they consider expanding easing measures and asset purchases to drive the Yen lower. In light of the move by China to devalue the Yuan, this could elicit comparable actions from the Bank of Japan. These latest results could be viewed as the beginning of the fifth recession to face the Japanese economy in just over 6 years, further highlighting the economic woes facing the beleaguered nation as policymakers seek to restructure the economy. The Yen has given up ground against the US dollar overnight, with USDJPY trending higher.