MNI POLICY: Japan Govt Keeps Econ View; Must Eye Trade Impact

     TOKYO (MNI) - Japan's government Thursday left its overall economic

assessment unchanged from the previous month for the 11th straight month, saying

"The Japanese economy is recovering at a moderate pace". 

     As for the near-term outlook, the government maintained its optimistic

view, saying, "the economy is expected to continue recovering, supported by the

effects of the polices, while employment and income situation is improving."

     However, the government warned that attention must be paid to the impact of

trade issues, uncertainties over overseas economies, along with financial and

capital markets.

     The government kept its assessment of major economic components, such as

capital investment, private consumption and exports, unchanged from the previous

month.

     "Business investment is increasing," the government said, adding that,

"Private consumption is picking up," and "Exports are almost flat."

     Japan's economy posted the first contraction in two quarters in the

July-September period, down 0.3% on quarter, or an annualized -1.2%, weighed by

private consumption, capital investment and exports following recent natural

disasters, preliminary gross domestic product data released on Nov 14 showed.

     The downturn in the third quarter followed a gain of 0.8% on quarter, or an

annualized +3.0% in the second quarter.

     Japanese policymakers expect the economy to return to a moderate recovery

path in the fourth quarter after a temporary blip caused mainly by the natural

disasters in Q3.

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

[TOPICS: MAJDS$,M$A$$$,M$J$$$]