Kyodo economic news summary -4-.

Japan Weekly Monitor, August, 2004

TOKYO, July 30 Kyodo

---------- Sumitomo Mitsui to offer merger with UFJ Holdings

TOKYO - Sumitomo Mitsui Financial Group Inc. on Friday challenged Mitsubishi Tokyo Financial Group Inc. to an unusual battle to become the world's largest banking group together with the UFJ group.

Sumitomo Mitsui President Yoshifumi Nishikawa told reporters Japan's No. 3 banking group in terms of assets will ask UFJ Holdings Inc., the holding company of the No. 4 group, to launch negotiations to integrate their operations, saying he will make the proposal in a meeting with UFJ Holdings President Ryosuke Tamakoshi later in the day.

---------- Housing starts in Japan down 7.4% in June

TOKYO - Housing starts in Japan fell 7.4 percent in June...