Tokyo, Aug. 17 -- Japan's economy grew at an annualised 1.1 per cent in April-June, marking a second consecutive quarter of expansion, but fell short of the 2.0 per cent market expectation as the fallout from the West Asia conflict weighed on business investment and household spending, government data showed on Monday.

On a quarter-on-quarter basis, gross domestic product rose 0.3 per cent, below the 0.5 per cent forecast as a 0.5 percentage-point boost from exports was partly offset by a 0.2 percentage-point drag from weaker domestic demand.

On a year-on-year basis, the country's economy expanded 0.7 per cent, up from 0.5 per cent in the first quarter.

Capital spending emerged as the biggest drag, contracting 1.2 per cent during the q...