"The risk of a contraction in the second half of the year is increasing"
- Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo
Japan's core inflation fell 0.3 per cent in July from a year before, as nation's economy struggles to escape deflation and reach the central bank's 1 per cent inflation target.
"The risk of a contraction in the second half of the year is increasing," said Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo.
"The downside risks on the economy are increasing, and could push the BOJ to further expand its asset- purchase program next month."
The Nikkei 225 Stock Average erased 0.63 per cent, or 56.02 points, to 8,783.89. The broader Topix Index fell 0.41 per cent, or 3.01, to 728.63.
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