- Mitsubishi UFJ Morgan Stanley Securities
Japan's exports dropped for the fifth consecutive month in February, the longest losing streak since 2012. Merchandise exports plunged 4.0% from a year earlier to 5.703 trillion yen, according to the Ministry of Finance. The decline followed the previous month's 12.9% plunge. Although shipments to China rose 5.1%, the first increase in seven months, worries remain that sluggish overseas demand could push the world's third biggest economy into its fourth recession in five years. Exports to the broader Asian region decreased 6.1%, the sixth consecutive monthly decline, while exports to the US, the largest importer of Japan-made goods, climbed a modest 0.2% after sliding for two months in a row. Export volumes rose 0.2% from a year earlier, a modest increase but the first in eight months. Japanese imports plummeted 14.2% in February to Y5.461 trillion, the 14th consecutive monthly decline. As a result, Japan's trade balance came to a Y242.8 billion surplus compared with a Y426.0 billion shortfall in the same month a year earlier.
The Bank of Japan said earlier in the week it would keep its massive asset buying programme at existing levels but offered a bleaker view of Japan's economy, suggesting it may introduce more stimulus as it struggles to reach the inflation target.
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