Japanese exports grow 45.3%

[jimmy olsen]

Very impressive, but can this really be maintained?

http://www.bloomberg.com/apps/news?pid=20601080&sid=aId_r0ZlN8UI

apan's Exports Grow at Fastest Pace in 30 Years (Update2)
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By Keiko Ujikane

March 24 (Bloomberg) -- Japan's exports climbed at the fastest pace in 30 years in February, increasing the likelihood the economic recovery will be sustained.

Shipments abroad increased 45.3 percent from a year earlier, helping the trade surplus expand the most since 1982, the Finance Ministry said today in Tokyo. Exports rose to all regions for the first time since August 2007.

More than $2 trillion in worldwide public spending has revived global trade, fueling sales for exporters from Komatsu Ltd. to Mitsubishi Electric Corp. The rebound is starting to benefit Japanese households, easing concern domestic demand will slow as the effects of stimulus measures wear off, said economist Azusa Kato.

"Exports are extremely strong," said Kato, an economist at BNP Paribas in Tokyo. "We don't have to worry anymore about the risk of Japan slipping back into a recession."

The yen traded at 90.48 against the dollar at 11:08 a.m. in Tokyo from 90.40 before the report was released. The Nikkei 225 Stock Average rose 0.5 percent, extending its gains this month to 6.9 percent. The increase in exports was in line with the 45.7 percent median estimate of 17 analysts surveyed.

The surge was partly due to a favorable year-on-year comparison. In February 2009, shipments abroad tumbled a record 49.4 percent as global trade froze following the collapse of Lehman Brothers Holdings Inc. five months earlier. Exports fell a seasonally adjusted 1.7 percent from January.

Favorable Comparison

Last month's rebound was driven by Asia, especially China, though the pace of the gains moderated as the Lunar New Year holiday took place in February this year and January in 2009.

Shipments to Asia advanced 55.7 percent in February from a year earlier, compared with a 68.1 percent gain the previous month, today's report showed. Exports to China climbed 47.7 percent after rising 79.9 percent in January.

"Asian economies will likely maintain their robust recovery, helping Japan to sustain growth in exports," said Takahide Kiuchi, chief economist at Nomura Securities Co. in Tokyo.

Mitsubishi Electric yesterday forecast net income of 25 billion yen ($276 million) in the year ending March 31, reversing its previous estimate for a 20 billion yen loss. The maker of consumer electronics and assembly-line machinery cited demand from Asia, worldwide stimulus and cost cuts.

Komatsu's Sales

Komatsu, the world's second-biggest maker of large dump trucks and excavators, expects sales in China to climb between 40 percent and 50 percent in the year starting April 1, Kazuhiko Iwata, president of the company's mining division, said this month.

Demand in the U.S. also picked up from a year ago. Shipments to the world's biggest economy surged 50.4 percent in February, the most since May 1984, the ministry said. Sales to Europe rose 19.7 percent, the third consecutive increase.

"Before, exports were rising mostly because of Asia, but now the U.S. economy is rebounding, too. That's definitely a good sign," said Akiyoshi Takumori, chief economist at Sumitomo Mitsui Asset Management Co. in Tokyo. "It's very unlikely that Japan's recovery will falter this year."

Imports climbed 29.5 percent, the fastest pace in three years. The trade surplus swelled to 651 billion yen, nine times bigger than the gap a year ago. The median estimate of 22 analysts surveyed was for 560.6 billion yen.

Rebound Spreads

Recent reports show the rebound is spreading to the domestic economy. The unemployment rate fell to a 10-month low of 4.9 percent in January, bolstering consumer confidence. Service demand rose the most in more than a decade.

The Japanese government last week raised its assessment of the economy for the first time in eight months, saying the recovery is beginning to spur corporate earnings, home building and consumer spending.

Some Bank of Japan board members said they had "shifted slightly upward" their view of the economy because of exports to Asia, February meeting minutes showed yesterday.

Still, the rebound hasn't been fast enough to shake off deflation, which is squeezing profit margins and discouraging spending. The central bank last week doubled a credit program to 20 trillion yen to help spur consumer prices that have fallen for 11 consecutive months.

"Weak demand is being reflected in continuing price declines," said Chiwoong Lee, a senior economist at Goldman Sachs Group Inc. in Tokyo. "With the exception of consumer durables, which have support from fiscal policies such as eco points, consumption is lackluster and exerting downward pressure on prices."

To contact the reporter on this story: Keiko Ujikane in Tokyo at [email protected]
Last Updated: March 23, 2010 22:10 EDT
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[Zanza]

So if exports year-on-year fell by 49% from 2008 to 2009 and now grew by 45% from 2009 to 2010, doesn't that mean they are at like 75% of the 2008 amount? That's still terrible.

[CountDeMoney]

Very impressive, but can this really be maintained?

As long as you keep buying all that bullshit anime and those Hello Kitty backbacks it will.

[Lettow77]

 I wish Japan good luck in their endeavours. I myself just ordered some matcha.

A strong Japan is good for the world. Ever since we made them set korea loose, it's given us nothing but trouble.

And who will commit atrocities against the red chinese?

[Faeelin]

I wish Japan good luck in their endeavours. I myself just ordered some matcha.

A strong Japan is good for the world. Ever since we made them set korea loose, it's given us nothing but trouble.

I know you've got this cute schtick going on, but I seem to remember some trouble with a strong Japan too.

[Ed Anger]

Anime and Manga tards need to be sent to re-education camps. With Marti as camp kommandant.

[Neil]

I know you've got this cute schtick going on, but I seem to remember some trouble with a strong Japan too.

Now that the US has abandoned their imperialistic tendencies towards mainland China, those conflicts should be a lot less pronounced.

[Lettow77]

 The conflict was that we wanted white people to rule Indonesia, the phillipines and so on. Now that they no longer do, what harm is there in letting the japanese pursue hedgemony there? They can take up the yellow man's burden and try to uplift the savage native, or at least keep him from running about underfoot.

Japan is a success story of exporting western ideals. It would be well if they could bring up the rest of asia to their standard through studious occupation.

[Admiral Yi]

What western ideal has Japan ever exported?

[Strix]

Kobe Beef? They took the Western Ideal of Steak and made it better.

[Tonitrus]

The conflict was that we wanted white people to rule Indonesia, the phillipines and so on. Now that they no longer do, what harm is there in letting the japanese pursue hedgemony there?

Everyone knows that Hedgemony can only be attained by Europeans.

[sbr]

Hedgemoney?

[Jaron]

Kobe Beef? They took the Western Ideal of Steak and made it better.

[Alexandru H.]

  Japan and Western ideals? Where, where?

[Razgovory]

It works better if the word "weird" is spelled correctly.