Japan's real exports edge up

Japan's real exports grew in September thanks to robust demand from Asia, while the country's trade surplus climbed to its highest level since the global crisis. Although the pace of recovery in exports is likely to slow in coming months, economists expect exports to stay on a recovery track, boding well for Japan's economy, which relies heavily on overseas markets for its goods.
Nominal exports fell slightly on the yen's rise, however, and analysts say more strengthening in the currency could hurt manufacturers who are still smarting from a sharp slide in demand world-wide.
Real exports rose 5.4 percent from the previous month in September, Bank of Japan figures showed. Exports fell a seasonally adjusted 0.8 percent in September from the previous month, marking the third straight decline, the Finance Ministry said on Thursday. The ministry's seasonally adjusted figures do not exclude the effect of currency swings.
Compared with a year ago, Japan's exports fell 30.7 percent in September, slightly worse than a median market forecast for a 29.9 percent decline. Exports have been recovering for several months after a precipitous fall earlier this year, helping Japan rebound in April-June from its deepest recession since World War Two.
Reviving demand in Asia and emerging economies has led the recovery in Japan's exports so far, and this trend became clearer in September, benefiting shipments of Japanese-made automobiles, steel and electronic parts such as semiconductors, according to an official of the Ministry of Finance. Overall exports, as a result, hit the highest this year and were up 46 percent from the start of the year, while the degree of year-to-year fall narrowed to the smallest so far this year.
Exports to Asia, which account for more than a half of Japan's total exports, fell 22.2 percent in September from a year ago, while those to the United States fell 34.1 percent. Japan's jobless rate unexpectedly dropped to 5.5 percent in August from a record 5.7 percent the preceding month, but analysts are still not sure whether the worst is over.