Japan's economic prospects darken

JAPAN'S economic prospects darken on challenging external environment, poorer inflation expectations and slipping confidence in the government's economic revival strategy.

The dimmer prospects could possibly give rise to renewed expectations of additional stimulus.

The external environment remains challenging for Japan as China, which is one of Japan's major trading partners, shows signs of continued slowdown where its latest Purchasing Manufacturing Index (PMI) for September recorded 49.8, below the 50 mark needed to indicate an expansion.