PRESS DIGEST-Japan - Aug 1

Following are some of the leading stories in the Friday morning editions of Japanese newspapers, as compiled by Kyodo news agency:

-- Fukuda to carry out large-scale cabinet reshuffle today (Mainichi); Fukuda sounds out Aso for LDP secretary-general post (Asahi); Machimura likely remain as chief cabinet secretary (Yomiuri, Nikkei)

-- Government eyes keeping housing tax break to bolster economy (Asahi)

-- Japan sees first population increase in three years (Mainichi)

-- Big banks' business performance worsening clearly (Nikkei)