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flag Japan downgrades corporate profits outlook due to U.S. tariffs, but economy shows moderate recovery.

flag Japan has downgraded its view on corporate profits due to higher U.S. tariffs affecting automakers and manufacturers, marking the first downgrade in eight months. flag Despite this, the government's monthly report states the economy is recovering at a moderate pace, with strong investment in digitalization among non-manufacturers. flag However, exports are almost stagnant, and consumer sentiment is improving slowly.

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