Japan's second-quarter economic expansion has been revised upward from its initial reading, strengthening the case for the Bank of Japan's widely anticipated interest rate increase next week.

The Cabinet Office reported on Tuesday that gross domestic product grew at an annualized pace of 1.4% in the April-June period, surpassing the preliminary figure of 1.1% but falling short of the median economist forecast of 1.8%.

Incorporating newly available data, business investment in equipment emerged as the primary driver behind the upward revision. The metric declined 0.9% quarter-on-quarter, an improvement from the initially reported 1.2% drop.

These figures validate the central bank's assessment that the economy is broadly tracking its outlook, providing additional justification for raising interest rates at the September 18 policy meeting. Swap market pricing indicates investors have fully priced in a hike at that gathering.