IBT Staff Reporter

The Bank of Japan revised up its economic forecast for the current fiscal year on Thursday but reiterated that it will keep monetary policy easy, with deflation likely to persist at least until early 2011. The central bank kept interest rates at 0.1 percent and held off on new policy initiatives as widely expected, in a unanimous vote.

Oil fell for a second day on Thursday to below $77 after a slowdown in Chinese economic growth in the second quarter and U.S. Federal Reserve minutes renewed concerns about the recovery of the world economy.

The Australian dollar fell on Thursday, as selling by model-based funds weighed on the currency against the yen, while it took in stride data that pointed to a mild slowdown in China, rather than a deeper one as some had feared.

Gold edged up on Thursday after China's growth data for the second quarter was slightly weaker than expected, helping revive the precious metal's allure as a hedge at a time of economic uncertainty. Meanwhile, economists expect Beijing to make no dramatic policy response to Thursday's data, which is seen as positive for the precious metal's demand in China, analysts said.

Gold thrives on tragedies. And, it has proved once again that any economic crisis will help gold rise. This is the turn of Portugal, which is facing economic crisis like Greece. As the news spread about Portugal's economic woes, gold prices surged on Monday and Tuesday.

Gold prices gained momentum, from weak Chinese growth data for the second quarter, in Asian trade Thursday after dropped overnight on profit taking. Gold for immediate delivery was seen trading at $1212.67 an ounce at 12.00 noon Singapore time while U.S. gold futures for August delivery was at $1212.76 an ounce.

The Bank of Japan revised up its economic forecast for the current fiscal year on Thursday but reiterated that it will keep monetary policy easy, with deflation likely to persist at least until early 2011. The central bank kept interest rates at 0.1 percent and held off on new policy initiatives as widely expected, in a unanimous vote.

Asian stocks fell on Thursday as investors took profits from a recent rally after the Federal Reserve's caution on the U.S. economic recovery, even as Chinese data pointed to only a mild cooling in that economy.

The Australian dollar jumped about 0.3 percentage point, paring earlier losses, while U.S. S&P stock futures erased earlier losses on Thursday after a series of Chinese data eased worries about a slowdown in China.

Crude oil rallied as high as 78.15 after the US Energy Department reported crude inventory fell more than expected. However, gains were erased as the FED downgraded its economic forecasts. Disappointing retail sales also weighed on prices. The front-month WTI contract closed largely flat at 77.04. Today in Asia, prices remain under pressure as China's GDP growth eased to +10.3% in 2Q10, signaling the tightening policies have been effective.

GlaxoSmithKline expects to record a legal charge of 1.57 billion pounds ($2.4 billion) for the second quarter after settling the substantial majority of claims relating to its diabetes pill Avandia.

Agricultural Bank of China's $22 billion IPO made a lackluster debut in Shanghai, underscoring the challenges ahead for China's markets as other big banks look to tap investors for billions of dollars in funds.

Asian stocks erased most of their early losses on Thursday and the Australian dollar jumped after a spate of Chinese data confirmed the economy was slowing gradually but delivered no nasty surprises.

Agricultural Bank of China rose only marginally in the first minutes of its historic debut in Shanghai on Thursday, underscoring the difficult time that may lie ahead for a market that will be asked to absorb more big fundraisings by banks.

Apple Inc has called a surprise press conference for Friday to talk about the iPhone 4, as the company continues to deal with fallout from reported reception problems on its popular smartphone.

Marriott International Inc , operator of Marriott, Residence Inn and Ritz-Carlton hotels, posted a higher second-quarter profit on Wednesday, helped by a rise in room rates in North America.

American International Group Inc named director Robert Steve Miller as its new chairman, replacing Harvey Golub who resigned after clashing with Chief Executive Robert Benmosche over the botched sale of the insurer's Asian life unit.

Asian stocks fell in early trade on Thursday after a downbeat assessment of the economic recovery by the U.S. Federal Reserve and with caution prevailing ahead of China's second quarter GDP data.

Bank of America Corp plans to offer an online bank account that charges an $8.95 monthly fee for paper statements and using tellers, as it looks for ways to make up for income lost because of new regulations.

Marriott International , the largest U.S. hotel company by market value, posted a higher quarterly profit on Wednesday as room rates rose in North America for the first time in about two years.

Investors have muted expectations for Google Inc's second-quarter results, as economic clouds and shifts in the company's strategy dampened hopes that it will beat Wall Street estimates.

GlaxoSmithKline Plc's diabetes drug Avandia should be allowed to stay on the market but with additional warnings, U.S. health advisers recommended on Wednesday, easing a threat of further costly litigation that could have followed a ban.

The AUD has had a relatively quiet trading session overnight and we're likely to see a similar trading pattern this morning as the local market awaits the release of a wave of Chinese data due out around lunchtime.

Consumer sentiment in Australia markedly improved rising to 11.1% the most in 13 months, following 3 months of decline.

U.S. health experts recommended Wednesday that GlaxoSmithKline's (GSK) diabetes drug Avandia still be sold despite the heart attack risk it poses to patient.

Options activity on Google Inc suggests about a 4 percent move in the stock with a moderate upside bias following the Internet giant's earnings report due after the bell on Thursday.

Consumer Reports said on Wednesday its tests confirmed that putting Apple Inc's new iPhone into a case fixes the reception problems that some users have experienced.

U.S. health advisers voted on Wednesday to keep GlaxoSmithKline's Avandia diabetes drug on the market, with a majority of those in favor recommending the treatment carry additional warnings.

No one ever said the Lehman Brothers bankruptcy case would be easy, or quick.