• Cuts economic assessment in August , first downgrade since October 2011.
  • Economy in moderate recovery led by rebuilding after earthquake , while some weak movements seen recently.
  • Economic outlook to be affected by global slowdown but reconstruction-led recovery to continue .
  • Further global slowdown , sharp market swings amid Europe debt crisis are risks to Japan economy.
  • Cuts assessment on exports, imports, industrial output, personal consumption, and housing construction.
  • Raises assessment on employment situation .

In the meantime the Nikkei open up 0.4% to 9,122.50, with the market remaining cautious ahead of Bernanke’s speech on Friday.

USD/JPY trading at 78.75 . Mid-range of the session high 78.77/ low 78/73.