Japan bank warns of U.S. 'downside risk'

TOKYO, Oct. 15 (UPI) -- Bank of Japan Gov. Toshihiko Fukui said Monday global-economic uncertainties remained, including a downside risk to the U.S. economy.

"Unstable conditions in the international financial markets continue, and there are uncertainties surrounding the global economy, such as downside risks to the U.S. economy," Fukui said in a speech to a meeting of the central bank's branch managers.

"We need to continue to watch developments in the international financial markets as well as the global economy," he said.

But Japan's economy remained stable and "as a whole expanded moderately," Fukui said.

The central bank downgraded its view for Japan's northernmost Hokkaido island, the south-central Kansai or Kinki region and the southwestern Kyushu-Okinawa area, the Kyodo News service reported.