ALLAN CHERNOFF, CNN ANCHOR: Now we're going to head over to Dalton Tanonaka, standing by, with a look at Asian markets. And, Dalton, seems the Bank of Japan, once again, lowering its assessment of the economy in Tokyo?</s>DALTON TANONAKA, CNN CORRESPONDENT: Yes, that's right. It was an expected downgrading of the economy, follows the government's assessment last week, Allan, that the economy is deteriorating; a key word that they've hardly used before. Today in trading, Tokyo's Nikkei slipped .7 percent on weakness in telecoms. Investors pulled out of that sector as a price fight intensified, with the decision by mobile phone carrier, J-Phone-East to cut rates next month. Analysts say parent Japan Telecom is trying to gain market share on industry leader NTT DoCoMo. Also hurting sentiment in Tokyo was the Bank of Japan's downgrade of its assessment for the economy for June. The Central Bank saying the economy is in an adjustment phase and blames a drop in exports for falling output. Hong Kong's Hang Seng index fell 1.1 percent to close at a two- month low. Weighing that market down, sharp falls in China's two biggest mobile phone operators. China Mobile and China Unicom each losing near 4 percent on concerns about their earnings growth. Taiwan's weighted index slipped 1.7 percent, led by heavyweight United Microelectronics. The world's second biggest microchip factory fell 4.7 percent, after warning Friday that it would make a second quarter loss due to weak market conditions. And that is the business day here in Asia. Back to you, Alan, in New York.</s>CHERNOFF: OK, Dalton, thank you much.
Outlook for Japanese Economy Downgraded