UPDATE 1-Japan index on economic outlook rises at record

* Leading, coincident indicator indexes both rise in June

* BOJ revises up view on economy in August report

* Govt, BOJ warn of risks to economic outlook

(Adds details, BOJ monthly report)

By Kaori Kaneko and Leika Kihara

TOKYO, Aug 5 (Reuters) - An index gauging the outlook for
Japan's economy rose in June at a record pace from May in a sign
that the recovery from the March earthquake is broadening,
although the government warned of risks to the outlook such as
slowing global growth.

The Bank of Japan raised its assessment of the economy in
its monthly report for August but also warned of potential
damage from recent yen rises and heightening uncertainty over
the global economy.

"Japan's economy is picking up steadily as supply
constraints from the quake ease," the central bank said in the
report issued on Friday, adding that a return to a moderate
recovery was projected as factory output rebounds.

"But both advanced and emerging economies are facing high
uncertainties. The yen is strengthening so the move's impact on
exports need to be monitored carefully," it said.

Japan's index of leading indicators, a gauge of the economy
a few months ahead that is compiled from data such as the number
of job offers and consumer sentiment, rose 3.8 points from May,
the biggest increase on record, the government said on Friday.

Production of automobiles and electronic goods improved and
inventories of electronic goods fell sharply, while business and
consumer sentiment picked up, driving the improvement in the
index, it said.

The index of coincident indicators, comprising data
measuring the current state of the economy, rose a preliminary
2.5 points. The government revised up its assessment of the
index, saying that it suggested an improvement in the economy.

"Along with an improvement in production, such as for autos,
from declines in March and April, employment and consumption
have also recovered," Minoru Masujima, director of the
department of business statistics at the Cabinet Office, told a
briefing.

"The biggest risk is how the economies of the United States
and Europe will affect Japan, and whether China will further
tighten policy to prevent economic overheating."

The government and the BOJ have become increasingly
confident that Japan's economy will resume a moderate recovery
in autumn as it shakes off supply constraints due to the March
earthquake.

But that view has fallen into doubt as the yen's surge and
the global economic slowdown cloud the outlook for the export
reliant economy, prompting Japan on Thursday to intervene in the
currency market and to ease monetary policy.

(Editing by Edmund Klamann)