It was a slow start to the week in Asia with tight ranges existing for the first part. The morning release of Japan’s Q2 growth numbers was a disappointment, coming in at a mere +0.1% q/q versus +0.6% expected and a revised +1.1% last. Comments from Japanese officials ranged from cabinet minister Tsumura saying external factors such as a slowing global economy may be forcing the economy to take a breather in Q2, though capital expenditure and private consumption are recovering; to strategic minister Arai saying the data shows the steady recovery has continued and he expects the economy to move to self-sustaining recovery ahead – positive words indeed…He also commented on the JPY – it needs monitoring whether its rise is hampering the recovery. The data set markets off on a mild risk-aversion trek but a hefty rebound in the second half of the day on Shanghai later meant the downtick in risk was short-lived.