Japan’s export growth accelerated for the second straight month last month, indicating a revival of overseas demand critical to the country’s recovery.
Exports from the world’s third-largest economy rose 13 percent from a year earlier on greater shipments of machinery and motor vehicles, the Ministry of Finance said yesterday. North American demand was especially strong, reflecting an improving US economy.
The export growth beat market expectations and is an improvement from the 9.1 percent year-on-year growth recorded in November. The news boosted the Japanese stock market, with the Nikkei 225 stock average rising 0.8 percent to 10,488.06.
Exports have been a key driver of Japan’s economy. A steady slowdown in export growth between February and October last year, as well as a strong yen, had triggered concerns that the economy was faltering.
Economists are more optimistic about this year. A strengthening global economy usually translates to more orders for Japanese goods.
“As the yen appreciation trend seems to have run out of gas, we think exports should sustain growth on the strength of the U.S. economy,” said Yuriko Tanaka, an economist at Goldman Sachs in Tokyo, in a note to clients.
On Tuesday, the central bank upgraded its economic outlook for the fiscal year ending March 31. It now expects real GDP to expand 3.3 percent, up from 2.1 percent forecast in October.
While the Bank of Japan maintained its assessment that the country’s recovery “seems to be pausing” and that exports were “somewhat weak,” it predicted that the economy would gradually find its footing again.
Imports rose 10.6 percent in December. That resulted in a 34 percent bigger trade surplus of ￥727.7 billion (US$8.8 billion).
Exports to China, Japan’s biggest trading partner, rose 20.1 percent last month from a year earlier, according to the ministry report. Shipments to the US climbed 16.5 percent, while those to the EU rose 9.7 percent.
For the 2010 calendar year, Japan’s exports rose 24.4 percent, marking the first annual expansion in three years. Shipments to China hit a record high of ￥13.09 trillion, accounting for more than 19 percent of Japan’s exports.
SOUTH KOREA
Meanwhile, South Korea’s current account surplus rose last month from November due to strong exports, bringing the full-year surplus to the fourth largest on record, the Bank of Korea said yesterday.
The statistics are expected to further strengthen the won, which has risen 1.7 percent against the dollar so far this year.
The current account surplus, the broadest measure of trade with the rest of the world, was US$2.11 billion last month, up from US$1.93 billion in November, the central bank said.
That compares with a surplus of US$708.7 million in December 2009.
The account remained in surplus for a 10th consecutive month after recording deficits in January and February last year, as exports increased amid the global economic recovery.
The full-year surplus was US$28.21 billion, supported by strong exports of semiconductors and automobiles.
In 2009 the country ran a surplus of US$32.79 billion.
Economists quoted by Dow Jones Newswires said the underlying trend was expected to continue this year, further supporting the won, although the size of the surplus is expected to shrink as imports rise with the improving economy.
The goods account had a surplus of US$3.68 billion last month compared to a revised US$3.17 billion in November thanks to brisk exports of automobiles, ships and electronic devices.
For all of last year, the goods balance posted the second-largest surplus ever of US$41.9 billion.
A shortfall in the service account, which includes spending by South Koreans on overseas trips, reached US$1.15 billion last month compared to a revised US$304.5 million deficit the previous month.
The capital and financial account, which tracks cross-border investments, posted a net outflow of US$336.2 million last month compared with a revised net outflow of US$2.19 billion in November.
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