The Bank of Japan (BoJ) released its monthly report on Friday. The central bank said that Japan's economy continued to recover moderately. The slowdown in emerging economies weighed on exports, the central bank added.

"Exports are expected to remain more or less flat for the time being, but after that, they are likely to increase moderately, as emerging economies move out of their deceleration phase," the BoJ noted.

Private consumption is expected to remain resilient, according to the BoJ.

Producer price inflation declined due to lower commodity prices, the central bank said.