Japan's manufacturing and services PMI indicators are trending around 50 suggesting conditions are flat. Tax collections in May were down 8% from the same time last year suggesting corporate profits and personal incomes are contracting. Air traffic for both imported and exported goods are now both showing negative growth. Taken all together, we have downgraded our economic assessment for Japan from 'Positive' to 'Neutral'. We also note that our China indicators might have finally stabilised, albeit at lower levels and so far for only one month. Meanwhile, the US continues to recover from earlier weakness in the year, and the EU looks to be lifting out of its doldrums as well. (VIEW LINK)