Tokyo, Aug 10 (AFP) Japan's economy returned to growth in the second quarter following its first contraction in two years, official figures showed today, but fears of US trade wars clouded the outlook.

The world's third-largest economy grew 0.5 percent quarter-on-quarter in the April-June period, compared with a 0.2-percent decline in January-March, the Cabinet Office said.

But analysts warned US-led trade wars could be a major risk factor for an economy still struggling to win a long battle against deflation. (AFP)

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