BOJ worry about fallout from yuan devaluation

Tokyo

CHINA'S devaluation of the yuan exposes an undefended flank in the Bank of Japan's efforts to jolt its flagging economy out of decades of deflation, which rely heavily on a solid pickup in overseas demand.

A growing number of Japan's central bankers are privately voicing concern that the problems behind China's currency move will hit Asian demand harder than expected, threatening a Japanese export rebound they hope will stave off the need for another splurge of monetary easing.

Since April 2013, the bank has ploughed 170 trillion yen (S$1.9 trillion) into a radical quantitative easing p…