"Japan needs more monetary stimulus to sustain the recovery"
- Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co.
Japan's trade deficit widened in July as the debt crisis in Europe and economic slowdown in China dragged down exports. Deficit in trade came in at 517.4 billion yen, the highest reading ever for the month.
"Japan needs more monetary stimulus to sustain the recovery," said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co. in Tokyo.
"Sentiment among manufacturers is deteriorating globally, triggered by Europe's fiscal problems, and that's adversely affecting Asian economies."
The Nikkei 225 Stock Average erased 0.27 per cent, or 25.18 points, to 9,131.74. The broader Topix Index fell 0.33 per cent, or 2.53, to 762.73.
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