AI
Wednesday, February 25, 2009 8:00:53 AM
Japan’s Exports Plunge as Downturn Spreads in Asia
By BETTINA WASSENER
Published: February 25, 2009
HONG KONG -- Japan’s exports fell by 46 percent in January, and Hong Kong’s economy contracted 2.5 percent in the last three months of 2008, further signs that the economic downturn in Asia is set to drag on through this year, data released Wednesday showed.
Much of Asia’s growth in recent years was based on an export boom, allowing the recession in the United States and Europe to spread through a region that had been insulated from the U.S. financial troubles that triggered the current downturn.
The Japanese economy was one of the first in Asia to tip into recession last year as weakness stemming from poor domestic demand was compounded by evaporating demand from overseas. During the last three months of 2008, Japan’s economy shrank a dramatic 12.7 percent from the year-earlier period, and the trade data for January, which was released Wednesday, underpinned economists’ views that the start of 2009 is looking even worse.
Exports plunged 46 percent from a year earlier and imports dropped 32 percent, echoing similarly sharp declines reported recently by China and Taiwan.
Overseas demand is unlikely to pick up soon, with Ben Bernanke, the chairman of the U.S. Federal Reserve, saying late on Tuesday that full recovery could be at least a year away.
Japan’s export decline was in line with what analysts had expected, and was in part due to the timing of the Lunar New Year holiday in January. But it marked a significant worsening from an already grim December, when exports fell 35 percent. The yen -- whose strength against the dollar has made Japanese goods more expensive for U.S. consumers -- has weakened during the last three weeks, trading at around 97 to the dollar on Wednesday, compared to about 89 in early February. But it remains much stronger than levels of around 108 yen a year ago and will continue to be a serious drag on the Japanese economy.
Virtually every big-name exporter has cited the yen as a main reason for sharply reduced sales are expected to lead to deep losses this year.
Honda, one of the few to still project a profit for the business year ending in March, on Wednesday provided the latest sign of how companies are faring, saying its vehicle production was down 33.5 percent in January.
In Hong Kong, meanwhile, the government said on Wednesday that it expected the economy to shrink 2 to 3 percent in 2009, continuing a contraction that began last year, when growth slowed to 2.5 percent, compared to 6.4 percent in 2007. In the last quarter of 2008, the economy contracted 2.5 percent compared to a year earlier.
Hong Kong, like Japan and Singapore, slipped into recession late last year, partly because of its relative openness and the exposure to the financial sector. Unlike Singapore, which expects its economy to shrink by up to 5 percent this year, economists say Hong Kong benefits from its proximity and links to China, where the government has announced huge stimulus measures and has the financial firepower and policy leeway to do more.
Hong Kong also announced on Wednesday a series of policy measures to support growth, including tax cuts and additional spending on public works projects.
Elsewhere in the region, South Korea said it would start a $13.2 billion fund to bolster its commercial banks and dispel worries about the stability of its financial sector.
Copyright 2009 The New York Times Company
http://www.nytimes.com/2009/02/26/business/worldbusiness/26yen.html
==========
Japan logs record trade deficit as exports collapse
Japan's recession woes deepened as exports plunged at the fastest pace ever last month
The logos of Japanese electrical giants Hitachi, NEC, Sony and Panasonic
A visitor checks a Toyota Land Cruiser at a Toyota Motor showroom in Tokyo
February 24, 2009
TOKYO (AFP) — Japan's recession woes deepened as exports plunged at the fastest pace ever last month, leaving Asia's biggest economy with a record trade deficit, official figures showed Wednesday.
Japan's heavy reliance on foreign demand to drive its recovery from a decade-long slump has left it vulnerable to the current global economic slowdown, which has sent sales of cars, televisions and other goods tumbling.
Japan's trade deficit ballooned to 952.6 billion yen (9.9 billion dollars) in January as exports plunged 45.7 percent from a year earlier, the finance ministry reported.
It was the worst month since records began in 1979, marking a dramatic shift in fortunes for Japan's economy, which used to enjoy large surpluses thanks to brisk demand for its high-tech products.
Once seen as relatively immune to the global downturn, Japan's economy has become one of the worst affected, exposing the fragility of its export-led rebound after the 1990s recession.
Analysts expect Japan to report Friday a record 10 percent drop in factory output in January from the previous month. Unemployment is also forecast to rise as corporate icons such as Sony and Toyota slash thousands of jobs.
"Because of the shrinking global economy, Japan's business model of being dependent on exports is not working at all," said Barclays Capital chief Japan economist Kyohei Morita.
But with the population declining and the government reluctant to admit foreign workers, Japan has no choice but to rely on overseas markets, said Morita, who sees exports falling until the third quarter of this year.
Demand for Japanese exports has been crushed by a slump in worldwide consumer spending, pushing the world's second largest economy into its worst recession in decades.
A surging yen has added to exporters' troubles, making it harder for them to remain competitive.
Japanese exports to the United States and the European Union area roughly halved in January. Car exports plunged more than two-thirds as automakers idled plants in response to slumping sales.
Few analysts are optimistic about the chances of a significant rebound in Japanese shipments any time soon.
"In my view the global economy is heading into a depression. So the prospect of a recovery in demand for Japan's goods in the near- to mid-term are very low," said Kirby Daley, senior strategist at Newedge Group in Hong Kong.
The government said last week that Japan's economy was in the deepest crisis since World War II, after contracting at an annualised pace of 12.7 percent in the last quarter of 2008, the worst performance in almost 35 years.
The worsening recession comes at a time when Japan's ruling party is facing the risk of losing its half-century grip on power, with Prime Minister Taro Aso's popularity plunging along with the economy.
Japan's unemployment rate rose to a near three-year high of 4.4 percent in December and looks likely to top the post-World War II peak of 5.5 percent later this year, analysts said.
"With the export sector extremely weak and the domestic economy weakening, there is a growing risk that you could get a significant rise in Japanese unemployment," said Christopher Wood, an equity strategist at the CLSA bank.
Japan's jobless rate may even head towards 10 percent, he warned.
Copyright © 2009 AFP
http://www.google.com/hostednews/afp/article/ALeqM5h1av-s25alxnt7Wn5PPRxEvbds6Q
==========
Japan exports drop 46% in January
Japan's exports to the US and EU have tumbled
Japan's exports plunged 45.7% in January compared with a year ago to hit the lowest figure in 10 years, official figures have shown.
Page last updated at 11:07 GMT, Wednesday, 25 February 2009
Imports exceeded exports by 952.6bn yen ($9.9bn; £6.8bn). It is the largest gap since records began in 1980.
Demand for Japanese cars in particular dropped by 69%.
Trade in electronics and other goods has also slumped as global economies and consumer spending contract, pushing Japan deeper into recession.
"Japan is particularly vulnerable to this downturn because trade is so central to the economy," World Trade Organization head Pascal Lamy told reporters on a visit to Tokyo.
Serious crisis
Japanese exports to the US, where the global downturn began, fell nearly 53% in January, while shipments to the European Union shrank by 47%, Japan's finance ministry said.
"Exports to Asia, particularly to China, are tumbling at about the same pace as shipments to the United States, signalling that even China's economy may be shrinking," said Takeshi Minami, chief economist at Norinchukin Research Institute.
Exports to Asia dropped 47%, while those to China fell 45%.
The government said last week that Japan's economy was in its most serious crisis since World War II, after it contracted at an annualised rate of 12.7% in the last quarter of 2008.
This was its worst performance in almost 35 years, officials said.
Among those hit hard by the global downturn are export-oriented Japanese electronic makers.
As well as carmakers, they have had to cut output and eliminate jobs amid a sharp drop in global demand.
Pioneer has announced 10,000 job cuts and Sony is trimming its global workforce by 8,000 positions.
Stimulus
Meanwhile, Japan's government is pushing bills through parliament to implement a stimulus plan, including a cash handout of at least $130 for each Japanese taxpayer, the BBC's Roland Buerk reports from Tokyo.
But any bold moves may be difficult to push through because of the unpopularity of Prime Minister Taro Aso, our correspondent says.
US President Barack Obama and Mr Aso have agreed to work together to stimulate economic demand and fight protectionism as the latter visits the US.
The US and Japanese economies are respectively the world's largest and second-largest.
---
JAPAN CARMAKERS' EXPORTS
Toyota - down 57.1% in January from a year earlier
Honda - down 46.3%
Nissan - down 62.1%
Mitsubishi - down 77.4%
Mazda - down 72.1%
Suzuki - down 56.1%
Source: Company results
[Japan carmakers' output plummets
25 February 2009
http://news.bbc.co.uk/2/hi/business/7909457.stm ]
---
BBC © MMIX
http://news.bbc.co.uk/2/hi/asia-pacific/7909248.stm
==========
and from ealier in this string, see also in particular (items linked in):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35827859
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35827694
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35826776
and
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35826344
By BETTINA WASSENER
Published: February 25, 2009
HONG KONG -- Japan’s exports fell by 46 percent in January, and Hong Kong’s economy contracted 2.5 percent in the last three months of 2008, further signs that the economic downturn in Asia is set to drag on through this year, data released Wednesday showed.
Much of Asia’s growth in recent years was based on an export boom, allowing the recession in the United States and Europe to spread through a region that had been insulated from the U.S. financial troubles that triggered the current downturn.
The Japanese economy was one of the first in Asia to tip into recession last year as weakness stemming from poor domestic demand was compounded by evaporating demand from overseas. During the last three months of 2008, Japan’s economy shrank a dramatic 12.7 percent from the year-earlier period, and the trade data for January, which was released Wednesday, underpinned economists’ views that the start of 2009 is looking even worse.
Exports plunged 46 percent from a year earlier and imports dropped 32 percent, echoing similarly sharp declines reported recently by China and Taiwan.
Overseas demand is unlikely to pick up soon, with Ben Bernanke, the chairman of the U.S. Federal Reserve, saying late on Tuesday that full recovery could be at least a year away.
Japan’s export decline was in line with what analysts had expected, and was in part due to the timing of the Lunar New Year holiday in January. But it marked a significant worsening from an already grim December, when exports fell 35 percent. The yen -- whose strength against the dollar has made Japanese goods more expensive for U.S. consumers -- has weakened during the last three weeks, trading at around 97 to the dollar on Wednesday, compared to about 89 in early February. But it remains much stronger than levels of around 108 yen a year ago and will continue to be a serious drag on the Japanese economy.
Virtually every big-name exporter has cited the yen as a main reason for sharply reduced sales are expected to lead to deep losses this year.
Honda, one of the few to still project a profit for the business year ending in March, on Wednesday provided the latest sign of how companies are faring, saying its vehicle production was down 33.5 percent in January.
In Hong Kong, meanwhile, the government said on Wednesday that it expected the economy to shrink 2 to 3 percent in 2009, continuing a contraction that began last year, when growth slowed to 2.5 percent, compared to 6.4 percent in 2007. In the last quarter of 2008, the economy contracted 2.5 percent compared to a year earlier.
Hong Kong, like Japan and Singapore, slipped into recession late last year, partly because of its relative openness and the exposure to the financial sector. Unlike Singapore, which expects its economy to shrink by up to 5 percent this year, economists say Hong Kong benefits from its proximity and links to China, where the government has announced huge stimulus measures and has the financial firepower and policy leeway to do more.
Hong Kong also announced on Wednesday a series of policy measures to support growth, including tax cuts and additional spending on public works projects.
Elsewhere in the region, South Korea said it would start a $13.2 billion fund to bolster its commercial banks and dispel worries about the stability of its financial sector.
Copyright 2009 The New York Times Company
http://www.nytimes.com/2009/02/26/business/worldbusiness/26yen.html
==========
Japan logs record trade deficit as exports collapse
Japan's recession woes deepened as exports plunged at the fastest pace ever last month
The logos of Japanese electrical giants Hitachi, NEC, Sony and Panasonic
A visitor checks a Toyota Land Cruiser at a Toyota Motor showroom in Tokyo
February 24, 2009
TOKYO (AFP) — Japan's recession woes deepened as exports plunged at the fastest pace ever last month, leaving Asia's biggest economy with a record trade deficit, official figures showed Wednesday.
Japan's heavy reliance on foreign demand to drive its recovery from a decade-long slump has left it vulnerable to the current global economic slowdown, which has sent sales of cars, televisions and other goods tumbling.
Japan's trade deficit ballooned to 952.6 billion yen (9.9 billion dollars) in January as exports plunged 45.7 percent from a year earlier, the finance ministry reported.
It was the worst month since records began in 1979, marking a dramatic shift in fortunes for Japan's economy, which used to enjoy large surpluses thanks to brisk demand for its high-tech products.
Once seen as relatively immune to the global downturn, Japan's economy has become one of the worst affected, exposing the fragility of its export-led rebound after the 1990s recession.
Analysts expect Japan to report Friday a record 10 percent drop in factory output in January from the previous month. Unemployment is also forecast to rise as corporate icons such as Sony and Toyota slash thousands of jobs.
"Because of the shrinking global economy, Japan's business model of being dependent on exports is not working at all," said Barclays Capital chief Japan economist Kyohei Morita.
But with the population declining and the government reluctant to admit foreign workers, Japan has no choice but to rely on overseas markets, said Morita, who sees exports falling until the third quarter of this year.
Demand for Japanese exports has been crushed by a slump in worldwide consumer spending, pushing the world's second largest economy into its worst recession in decades.
A surging yen has added to exporters' troubles, making it harder for them to remain competitive.
Japanese exports to the United States and the European Union area roughly halved in January. Car exports plunged more than two-thirds as automakers idled plants in response to slumping sales.
Few analysts are optimistic about the chances of a significant rebound in Japanese shipments any time soon.
"In my view the global economy is heading into a depression. So the prospect of a recovery in demand for Japan's goods in the near- to mid-term are very low," said Kirby Daley, senior strategist at Newedge Group in Hong Kong.
The government said last week that Japan's economy was in the deepest crisis since World War II, after contracting at an annualised pace of 12.7 percent in the last quarter of 2008, the worst performance in almost 35 years.
The worsening recession comes at a time when Japan's ruling party is facing the risk of losing its half-century grip on power, with Prime Minister Taro Aso's popularity plunging along with the economy.
Japan's unemployment rate rose to a near three-year high of 4.4 percent in December and looks likely to top the post-World War II peak of 5.5 percent later this year, analysts said.
"With the export sector extremely weak and the domestic economy weakening, there is a growing risk that you could get a significant rise in Japanese unemployment," said Christopher Wood, an equity strategist at the CLSA bank.
Japan's jobless rate may even head towards 10 percent, he warned.
Copyright © 2009 AFP
http://www.google.com/hostednews/afp/article/ALeqM5h1av-s25alxnt7Wn5PPRxEvbds6Q
==========
Japan exports drop 46% in January
Japan's exports to the US and EU have tumbled
Japan's exports plunged 45.7% in January compared with a year ago to hit the lowest figure in 10 years, official figures have shown.
Page last updated at 11:07 GMT, Wednesday, 25 February 2009
Imports exceeded exports by 952.6bn yen ($9.9bn; £6.8bn). It is the largest gap since records began in 1980.
Demand for Japanese cars in particular dropped by 69%.
Trade in electronics and other goods has also slumped as global economies and consumer spending contract, pushing Japan deeper into recession.
"Japan is particularly vulnerable to this downturn because trade is so central to the economy," World Trade Organization head Pascal Lamy told reporters on a visit to Tokyo.
Serious crisis
Japanese exports to the US, where the global downturn began, fell nearly 53% in January, while shipments to the European Union shrank by 47%, Japan's finance ministry said.
"Exports to Asia, particularly to China, are tumbling at about the same pace as shipments to the United States, signalling that even China's economy may be shrinking," said Takeshi Minami, chief economist at Norinchukin Research Institute.
Exports to Asia dropped 47%, while those to China fell 45%.
The government said last week that Japan's economy was in its most serious crisis since World War II, after it contracted at an annualised rate of 12.7% in the last quarter of 2008.
This was its worst performance in almost 35 years, officials said.
Among those hit hard by the global downturn are export-oriented Japanese electronic makers.
As well as carmakers, they have had to cut output and eliminate jobs amid a sharp drop in global demand.
Pioneer has announced 10,000 job cuts and Sony is trimming its global workforce by 8,000 positions.
Stimulus
Meanwhile, Japan's government is pushing bills through parliament to implement a stimulus plan, including a cash handout of at least $130 for each Japanese taxpayer, the BBC's Roland Buerk reports from Tokyo.
But any bold moves may be difficult to push through because of the unpopularity of Prime Minister Taro Aso, our correspondent says.
US President Barack Obama and Mr Aso have agreed to work together to stimulate economic demand and fight protectionism as the latter visits the US.
The US and Japanese economies are respectively the world's largest and second-largest.
---
JAPAN CARMAKERS' EXPORTS
Toyota - down 57.1% in January from a year earlier
Honda - down 46.3%
Nissan - down 62.1%
Mitsubishi - down 77.4%
Mazda - down 72.1%
Suzuki - down 56.1%
Source: Company results
[Japan carmakers' output plummets
25 February 2009
http://news.bbc.co.uk/2/hi/business/7909457.stm ]
---
BBC © MMIX
http://news.bbc.co.uk/2/hi/asia-pacific/7909248.stm
==========
and from ealier in this string, see also in particular (items linked in):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35827859
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35827694
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35826776
and
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35826344
Greensburg, KS - 5/4/07
"Eternal vigilance is the price of Liberty."
from John Philpot Curran, Speech
upon the Right of Election, 1790
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