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Japan's gross domestic product expanded a seasonally adjusted 0.5 percent on quarter in the second quarter of 2018, the Cabinet Office said in Friday's preliminary reading.

That exceeded expectations for an increase of 0.3 percent following the 0.2 percent loss in the three months prior.

On an annualized basis, GDP was up 1.9 percent - again topping expectations for 1.4 percent following the 0.6 percent contraction in the previous three months.

Nominal GDP added 0.4 percent on quarter, exceeding expectations for 0.2 percent after sliding 0.4 percent three months earlier.

The GDP deflator was up 0.1 percent on year, beating forecasts for a fall of 0.2 percent and down from 0.5 percent in the first quarter.

GDP private consumption was up 0.7 percent on quarter, topping forecasts for 0.2 percent after easing 0.1 percent in the three months prior.

GDP business spending jumped 1.3 percent on quarter, beating forecasts for 0.6 percent and up from 0.3 percent in Q1.

Also on Friday, the Bank of Japan said that producer prices in Japan were up 0.5 percent on month in July. That beat forecasts for a gain of 0.2 percent, which would have been unchanged from the previous month.

On a yearly basis, producer prices climbed 3.1 percent - exceeding expectations for 2.9 percent and up from 2.8 percent in the previous month.

Export prices were up 0.5 percent on month and 2.8 percent on year, the bank said, while import prices advanced 1.0 percent on month and 11.5 percent on year.