BOJ's Muto: Japan's positive economic cycle intact

SAPPORO, Japan, Jan 10 (Reuters) - Bank of Japan Deputy Governor Toshiro Muto said on Thursday that the Japanese economy's positive cycle was weakening temporarily but remained intact. The U.S. economic slowdown was accelerating somewhat and there was a need to keep in mind the possibility of a further worsening, said Muto, the leading candidate to succeed Goveror Toshihiko Fukui when his term expires in March.

"Downside risks for the global economy are heightening as adjustments in the U.S. economy and global financial markets deepen," Muto told business leaders in a speech in the northern city of Sapporo. (Reporting by Leika Kihara)