23 May 2016 at 5:58 GMT
Japan's exports fell in April at the fastest pace in three months as a stronger yen and weakness in China and other emerging markets take their toll on the country's shipments, boding ill for growth prospects for the current quarter. Exports declined 10.1% year-on-year in April, Ministry of Finance data showed on Monday, worse than a 6.8% drop 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. The decline was likely exaggerated by a drop in US-bound car exports due to supply-chain disruptions caused by earthquakes, but a rising yen and weak global demand are clouding the outlook. Takeshi Minami, chief economist at Norinchukin Research Institute said Asia and the global economy remain weak. "On top of that, yen gains squeeze profits at exporters, causing wages and capital spending to weaken, which would hamper 'Abenomics' aim of creating virtuous growth," Minami said.
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