MNI POLICY: BOJ Report: Most Japan Regions See Econ Expanding

--Two Regions See Modest Downgrade Reflection Summer Natural Disasters

     TOKYO (MNI) - The Bank of Japan's quarterly regional economic report,

released Thursday, showed all nine regions reporting either expanding or

recovering economies, indicating that the impact of the lingering trade dispute

on regional economies was limited.

     Compared with the previous meeting in July, both the Hokkaido and Chugoku

regions revised down their assessment from July in the wake of the damage from

the natural disasters over the period, the BOJ said.

     The key points from the report:

     --The Kinki region maintained its assessment that its economy had been

expanding moderately, although effects of a typhoon in September were being

observed.

     --The other six region left their economic assessments unchanged from three

months ago.

     --The background to these assessments was that the virtuous cycle from

income to spending had been maintained as labour market conditions continued to

tighten steadily and private consumption had been increasing moderately. Exports

had been on an increasing trend, with overseas economies showing solid growth.

     --One electronics firm said the company hasn't been put off implementing

capital investment, although there are concerns over the impact of the trade

dispute on sentiment, the report showed.

     --An automobile firm said the company has no plans to revise its production

plans around the globe, the report added.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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