Japan's export growth sees boost in November

Bank of Japan headquarters (green roof and next white building) stands in central Tokyo. Japan's export growth accelerated for the first time in nine months in November, data showed Wednesday, but the reading came in short of expectations amid fears of a looming economic slowdown.

Factory workers check assembled Prius hybrid vehicles at a Toyota Motors factory in Aichi prefecture. Japanese exports in November rose 9.1 percent to 5.44 trillion yen on year, the 12th straight monthly increase, with strong overseas demand, particularly for Japanese steel and metal working machinery, the ministry said.

Honda Motors' headquarters is reflected on the rear window of a Honda mini van, displayed outside in Tokyo. Japan, which heavily relies on exports of cars, electronics and machines, has been battered by a strong yen, which makes its goods less competitive abroad and erodes companies' overseas profits when repatriated.

AFP - Japan's export growth accelerated for the first time in nine months in November, data showed Wednesday, but the reading came in short of expectations amid fears of a looming economic slowdown.

Exports in November rose 9.1 percent to 5.44 trillion yen on year, the 12th straight monthly increase, with strong overseas demand, particularly for Japanese steel and metal working machinery, the ministry said.

The growth rate rose for the first time since February, when exports grew 45.3 percent. The rate had dropped to 7.8 percent in October.

However, the November figure missed expectations for a 10.8 percent rise in a poll of economists by Dow Jones Newswires.

Analysts said the Japanese economy remains locked in a trend of shrinking exports due to a stronger yen, which makes Japanese products more expensive in overseas markets, and expectations that overseas demand will weaken.

"Japan's exports are slowing, a trend that remains the same," said Taro Saito, senior economist at NLI Research Institute.

"The economy continues to be pressured by the higher yen, although the strength of the currency is becoming moderate," he said.

The unit has been relatively stable in recent weeks after hitting a 15-year high of 80.21 against the dollar in November, giving some respite to the export sector and easing pressure on the economy.

But it has stayed at a relatively high level, at 83.82 to the dollar in Wednesday trade.

On Tuesday the Bank of Japan held its key rate at between zero and 0.1 percent after a two-day meeting, warning that a fragile recovery from deep recession was "pausing".

Economic growth in the July-September quarter was earlier this month revised up to an annualised 4.5 percent thanks to a rush to beat expiring government incentives, but expectations are for a contraction in the fourth quarter.

Japan last month passed an extra budget worth 58 billion dollars to cover a new stimulus package aimed at averting the threat of a "double-dip" recession.

Prime Minister Naoto Kan's second stimulus package since he came to power is designed to ease concerns over deflation and a strong yen, and includes job programmes, welfare spending and assistance for small businesses.

Kan took office in June promising to slash spending and work towards cutting the country's massive public debt, accounting for nearly 200 percent of gross domestic product.

But the state of Japan's economy has complicated his ambitions.

In November, Japan's exports to China jumped 18.3 percent while those to the United States rose 1.2 percent.

Exports to Europe expanded 10.1 percent, the first rise in two months, data showed.

Japan's imports in November also jumped 14.2 percent to 5.28 trillion yen, the 11th consecutive rise, driven higher by demand for iron ore as well as audio and visual devices.

The larger imports almost halved the country's trade surplus in the month from a year earlier, marking the first decline in three months, the finance ministry said.

The overall surplus stood at 162.8 billion yen (1.94 billion dollars), 55.4 percent smaller than a year earlier, the ministry said, much lower than the market forecast of 446 billion yen.