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.