The countrys exports plunged 10.3% in September from a year ago, dimming hopes of rapid recovery in the Far East. Exports to Europe crashed 21pc. Shipments to China fell 14pc as the Diaoyu-Senkaku islands dispute led to a slump in car sales. Honda, Mazda, and Nissan all saw sales plunge near 30pc as Chinese consumers boycotted Japanese brands. Nomura said the export slump will push country into full recession.Stephen Jen from SLJ Macro Partners said the global storm is drifting eastwards into Asia, opening a “third chapter” of the crisis that will last well into 2013. “Many analysts have declared that the low in the global economic cycle is in place. We are not convinced,” he said, prediticting a rise in currency protectionism.
Japan’s export growth slowed for a fifth straight month in July, official data showed Wednesday, amid signs a fragile recovery was continuing to lose steam, with the strong yen posing a threat.
Exports climbed 23.5 percent to 5.98 trillion yen (70.9 billion dollars), less than June’s 27.7 percent but above market expectations of 21.8 percent. Imports rose 15.7 percent to 5.18 trillion yen, the finance ministry said.
Strong demand for automobiles, high-tech products and factory parts have helped offset a weaker domestic picture, enabling Japan’s biggest companies to return to profit and bring about a tentative economic recovery.