Some Japan firms worry over US trade policy uncertainty, BOJ says

TOKYO :Some Japanese companies are worried about heightened uncertainty over U.S. trade policy that could hit their profits and output, the central bank said in a statement on Monday after a quarterly meeting of its regional branch managers.

In a quarterly report on regional economies, the BOJ maintained its assessment for all nine areas to say they were either recovering or picking up moderately.

Brisk spending by overseas tourists and robust demand for luxury items have underpinned consumption, while firms maintained their robust capital expenditure plans, the BOJ said.

While the statement did not make direct mention of higher U.S. tariffs, it warned that "some firms voiced concern over the impact on output and profits" from U.S. trade uncertainty.

The BOJ said pay hikes were broadening for a wide range of sectors in regional areas, though some regions saw smaller firms voicing caution over further pay increases.

"Companies continue to pass on rising import costs at a moderate pace," with some also considering or implementing price hikes to raise funds to pay for rising labour costs, it said.