- Meiji Yasuda Life Insurance Co.
Japan's exports dropped in April at the quickest pace in three months as a stronger Yen and weakness in China and other emerging markets take their toll on the country's shipments, denting growth prospects for the current quarter. Overseas shipments plunged 10.1% in April from a year earlier, the Ministry of Finance said, while economists had predicted a 10.0% annual decline and following a 6.8% decrease in March. It was the seventh straight month of declines and the biggest since 12.9% in January, when Japanese shipments to Asia slowed sharply ahead of the Lunar New Year holidays. The drop was likely exaggerated by a fall in US-bound car exports due to supply-chain disruptions caused by last month's earthquakes in southern Japan, but a surging Yen and tepid global demand are clouding the outlook for the year.
Even after sliding an 18-month high earlier this month, the Japanese currency has gained 9% versus the US Dollar this year, undermining the competitiveness of the nation's products overseas and hurting the earnings of exporters. Worries about the effect of the Yen was on show over the weekend as Finance Minister Taro Aso and his US colleague disagreed over the seriousness of recent moves in the foreign-exchange market.
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