Japan's exports grew in October thanks to robust shipments to Asia, suggesting that a strong recovery in the region will support the country's export-driven economy for the rest of this year.
Declines in exports also slowed compared with a year ago, easing concerns among some economists that Japan's economy will go through a double dip.
China's economy is still powering ahead, and there are signs of recovery in domestic demand in other important markets such as the United States, that should support demand for Japan's goods, economists say.
Still, Japan's imports have been slow to improve, showing domestic consumption is structurally weak because of an ageing population and that the economy is vulnerable to shocks.
The real exports index, compiled by the Bank of Japan, rose 3.3 per cent to its highest level since November last year, following a 5.5 per cent climb in September.
Compared with a year ago, Japan's exports fell 23.2 per cent in October, less than a median market forecast for a 26.5 per cent decline and slower than a 30.6 per cent annual decline the previous month, the Finance Ministry data showed.
Exports to Asia, which account for more than a half of Japan's total shipments, fell 15 per cent in October from a year ago, the slowest pace of decline in one year.
Shipments to the United States fell 27.6 per cent in October from September, slower than a 33.9 per cent annual decline the previous month.
The recovery is broadening to goods that had been slow to pick up, such as general machinery.
The rebound in exports has been a major driving force behind Japan's recovery. The economy grew 1.2 per cent in the three months to September after a revised 0.7 per cent expansion in the preceding quarter.
Reuters