Ponce
27th May 2010, 05:01 AM
Like I said before.......other countries will be able to recover with no problems because they will be exporting.........where the US doesn't.
"No Export = No Recovery"... Ponce
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Japan Exports Rise More-Than-Estimated 40.4% on Asia (Update2)
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By Keiko Ujikane
May 27 (Bloomberg) -- Japan’s exports rose more than economists estimated in April, the first sign that the nation’s trade-led expansion extended into the second quarter.
Shipments abroad advanced 40.4 percent from a year earlier, the fifth straight increase, compared with 43.5 percent in March, the Finance Ministry said today in Tokyo. The median estimate of 17 economists surveyed by Bloomberg was for a 38.3 percent gain.
Growing demand in China and developing Asia is bolstering business for companies from Canon Inc. to Komatsu Ltd., prompting them to forecast higher earnings. While those sales fuel the nation’s expansion, a deepening sovereign-debt crisis in Europe is also destabilizing stock and currency markets and may cloud Japan’s growth prospects in coming months.
“So far, the recovery’s been driven by exports, and we’re likely to see a continuation of that†this quarter, said Noriaki Matsuoka, an economist at Daiwa Asset Management Co. in Tokyo. “Some kind of moderation is unavoidable, but we’ll continue to see growth.â€
Last month’s gain was fueled by demand for cars, auto parts and electronic equipment. Asia and the U.S. led the increase, while growth in shipments to Europe slowed, signaling the region’s debt crisis may already be damping demand.
Europe’s woes caused the yen to touch its highest level against the euro in eight years this week, threatening the competitiveness of Japanese exporters. The yen has gained about 14 percent versus the euro this month and 4 percent per dollar.
Yen, Stocks
Japan’s currency traded at 90.08 per dollar at 10:16 a.m. in Tokyo from 89.97 before the report, and was 110.02 against the euro from 109.52. The Nikkei 225 Stock Average fell 0.2 percent. It slid to the lowest since November earlier this week.
Imports climbed 24.2 percent from a year earlier, leaving a trade surplus of 742.3 billion yen ($8.2 billion), the ministry said. That’s about 15 times bigger than the 49 billion yen surplus posted in April 2009, when Japan was beginning to emerge from its worst postwar recession.
Export growth accelerated to a seasonally adjusted 2.3 percent in April from March’s 1 percent, and imports rose 3.4 percent.
A surge in exports drove most of Japan’s 4.9 percent annualized growth in the first quarter. Much of that demand came from developing markets in Asia.
Canon, Komatsu
Canon, the world’s biggest maker of cameras and office equipment, last month raised its full-year forecasts for profit and revenue, as Asian sales drive growth. Komatsu, the world’s second-biggest maker of construction equipment, said profit will almost triple this year as Chinese orders jump.
Global sales of excavators may rise 25 percent because of demand from China, parts maker Kayaba Industries Co. said last week, twice as much as the Japanese company’s forecast.
Exports to China, Japan’s biggest market, climbed 41.4 percent from a year earlier to 1.15 trillion yen, a record amount for the month of April. Shipments to the U.S. advanced 34.5 percent, accelerating from 29.5 in the previous month. Sales to Europe increased 19.8 percent, slowing from 26.7 percent in March.
While Europe isn’t Japan’s largest market, the nation’s trade will be affected when indirect exports routed through Europe are taken into account, Morgan Stanley MUFG Securities Co. said this week.
Passed ‘Sweet Spot’
Japan’s “economic activity has now passed the sweet spot, and we may well see renewed stagnation,†Morgan Stanley economists Takehiro Sato and Takeshi Yamaguchi wrote in a report on May 25. It’s “dangerous to dismiss the impact of Europe on Japan’s trade.â€
Only 12 percent of Japan’s shipments abroad went to the European Union in the year ended March 31, compared with 19 percent to China and 16 percent to the U.S., according to the Finance Ministry.
Matsuoka at Daiwa Asset said he’s most concerned about how a drop in China’s exports to Europe might affect Japan. Europe is China’s biggest market.
Not everyone is convinced Europe’s crisis will hamper Japan’s recovery. The Bank of Japan raised its economic assessment this week, citing signs the country’s rebound was becoming more sustainable.
Central bank Governor Masaaki Shirakawa said on May 21 that Europe’s debt woes have had a “limited†effect on Japan’s expansion so far, though any escalation would become a “downside factor.â€
"No Export = No Recovery"... Ponce
================================================
Japan Exports Rise More-Than-Estimated 40.4% on Asia (Update2)
Share Business ExchangeTwitterFacebook| Email | Print | A A A
By Keiko Ujikane
May 27 (Bloomberg) -- Japan’s exports rose more than economists estimated in April, the first sign that the nation’s trade-led expansion extended into the second quarter.
Shipments abroad advanced 40.4 percent from a year earlier, the fifth straight increase, compared with 43.5 percent in March, the Finance Ministry said today in Tokyo. The median estimate of 17 economists surveyed by Bloomberg was for a 38.3 percent gain.
Growing demand in China and developing Asia is bolstering business for companies from Canon Inc. to Komatsu Ltd., prompting them to forecast higher earnings. While those sales fuel the nation’s expansion, a deepening sovereign-debt crisis in Europe is also destabilizing stock and currency markets and may cloud Japan’s growth prospects in coming months.
“So far, the recovery’s been driven by exports, and we’re likely to see a continuation of that†this quarter, said Noriaki Matsuoka, an economist at Daiwa Asset Management Co. in Tokyo. “Some kind of moderation is unavoidable, but we’ll continue to see growth.â€
Last month’s gain was fueled by demand for cars, auto parts and electronic equipment. Asia and the U.S. led the increase, while growth in shipments to Europe slowed, signaling the region’s debt crisis may already be damping demand.
Europe’s woes caused the yen to touch its highest level against the euro in eight years this week, threatening the competitiveness of Japanese exporters. The yen has gained about 14 percent versus the euro this month and 4 percent per dollar.
Yen, Stocks
Japan’s currency traded at 90.08 per dollar at 10:16 a.m. in Tokyo from 89.97 before the report, and was 110.02 against the euro from 109.52. The Nikkei 225 Stock Average fell 0.2 percent. It slid to the lowest since November earlier this week.
Imports climbed 24.2 percent from a year earlier, leaving a trade surplus of 742.3 billion yen ($8.2 billion), the ministry said. That’s about 15 times bigger than the 49 billion yen surplus posted in April 2009, when Japan was beginning to emerge from its worst postwar recession.
Export growth accelerated to a seasonally adjusted 2.3 percent in April from March’s 1 percent, and imports rose 3.4 percent.
A surge in exports drove most of Japan’s 4.9 percent annualized growth in the first quarter. Much of that demand came from developing markets in Asia.
Canon, Komatsu
Canon, the world’s biggest maker of cameras and office equipment, last month raised its full-year forecasts for profit and revenue, as Asian sales drive growth. Komatsu, the world’s second-biggest maker of construction equipment, said profit will almost triple this year as Chinese orders jump.
Global sales of excavators may rise 25 percent because of demand from China, parts maker Kayaba Industries Co. said last week, twice as much as the Japanese company’s forecast.
Exports to China, Japan’s biggest market, climbed 41.4 percent from a year earlier to 1.15 trillion yen, a record amount for the month of April. Shipments to the U.S. advanced 34.5 percent, accelerating from 29.5 in the previous month. Sales to Europe increased 19.8 percent, slowing from 26.7 percent in March.
While Europe isn’t Japan’s largest market, the nation’s trade will be affected when indirect exports routed through Europe are taken into account, Morgan Stanley MUFG Securities Co. said this week.
Passed ‘Sweet Spot’
Japan’s “economic activity has now passed the sweet spot, and we may well see renewed stagnation,†Morgan Stanley economists Takehiro Sato and Takeshi Yamaguchi wrote in a report on May 25. It’s “dangerous to dismiss the impact of Europe on Japan’s trade.â€
Only 12 percent of Japan’s shipments abroad went to the European Union in the year ended March 31, compared with 19 percent to China and 16 percent to the U.S., according to the Finance Ministry.
Matsuoka at Daiwa Asset said he’s most concerned about how a drop in China’s exports to Europe might affect Japan. Europe is China’s biggest market.
Not everyone is convinced Europe’s crisis will hamper Japan’s recovery. The Bank of Japan raised its economic assessment this week, citing signs the country’s rebound was becoming more sustainable.
Central bank Governor Masaaki Shirakawa said on May 21 that Europe’s debt woes have had a “limited†effect on Japan’s expansion so far, though any escalation would become a “downside factor.â€