The Bank of Japan on Thursday kept its overall assessment of the economy unchanged in May but shifted to slightly more optimistic language, saying that evidence is mounting of a shift towards a pick up. The central bank's monthly report cited improvements in business and private investment, even as economic activity has remained more or less flat. "Japan's economy is expected to return to a moderate recovery path as the pace of recovery in overseas economies picks up, led by emerging and commodity-exporting economies, and as reconstruction-related demand after the earthquake disaster gradually strengthens," the Bank of Japan said.

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