Recovering Japan Eyes U.S. Economy Warily

Japan’s fragile economy is continuing to recover gradually, although possible risks exist if a slowing U.S. economy stalls Asian exports, Bank of Japan Gov. Masaru Hayami said in a report to the government in Tokyo. But he added that although Japan must be vigilant to changes in overseas economies, “there’s no need for the Bank of Japan to change its economic assessment” of a gradual recovery. Japan is trying to pull out of its worst downturn since the end of World War II, but recent economic data have shown declines in the growth in exports and capital spending. Japan’s benchmark Nikkei stock index has tumbled more than 9% since early December amid fears of a global slowdown.