Japan News $EWJ

· Japan’s Kan makes more comments – PM Kan said on Friday that he would take firm action on currencies when needed and that he would meet Bank of Japan Governor Masaaki Shirakawa when the central bank chief returns from an overseas trip.  Kan said he would unveil new economic stimulus measures on Aug 31.  Reuters 

· Japan GDP growth - cutting our ests - we revised down our GDP forecast for the next three quarters, while holding the 3Q GDP unchanged. We now expect the GDP growth rate to stagnate at 1.0% in 4Q 2010 and 1Q 2011, before picking up gradually in following quarters, driven by an increase in export to Asia and the stabilization of yen. As Japan's potential growth rate is expected to be about 0.5%-1.0% now with shrinking working age population, our new forecast does not assume the widening output gap, but expected slower growth weighs on the path to get out of deflation. 

· Japan - Core household spending edged down 0.1% m/m, sa. The result is seemingly disappointing,but the July slight drop occurred after the 2.1% solid rise in June, and 3m/3m sequential change improved materially to -0.3% from -6.2% in June.  Miwako Nakamura 

· Japan - The unemployment rate fell 0.1%pt to 5.2%, sa in July, after the cumulated 0.4%pt rise in the four months through June, with the number employed at firms rising a meaningful 0.5%m/m, sa to the highest level in four months. Reflecting increase in job offers, the job offers ratio extended its consecutive rise since April, and stands at 0.53, sa, the highest rate since March 2009, and a rising trend in new job offers continued.  Miwako Nakamura