MNI POLICY: BOJ To Keep View on Export Uptrend after Aug Data

     TOKYO (MNI) - The Bank of Japan will maintain its assessment that Japanese

exports are on an uptrend as the Ministry of Finance's trade data released

Wednesday showed Japanese exports rose 6.6% on year in August for the 21st

straight y/y rise.

     The trade data showed that global demand for Japanese cars, electronics and

machines remained solid despite the U.S.-China trade dispute.

     BOJ economists think the uncertainties over global growth are increasing in

the wake of the trade friction but they don't expect global demand to shrink

drastically in the near term.

     However, BOJ economists remain vigilant against the risks that Japanese

exports and industrial production will lose momentum, which in turn will prompt

firms to delay the implementation of capital investment.

     The next key piece of data is the Bank of Japan's real trade indexes for

August due out at 1400 JST (0500 GMT) on Wednesday.

     The real export index posted the first month-on-month rise in three months

in July, up 0.3% after falling 0.5% in June.

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

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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