Japan’s exports grow

TOKYO: Buoyant sales of cars and electronics led Japan´s exports to a 14th straight month of growth in January but manufacturers´ business confidence slid - highlighting fears of the rising yen disrupting an export-led recovery.

The trade data came on the heels of the Reuters Tankan survey that found Japanese manufacturers´ confidence deteriorated sharply in February, pointing to global stock market turmoil and the yen undermining business sentiment.

Such variable indicators underscore the challenge facing the Bank of Japan´s leadership trio, reappointed Governor Haruhiko Kuroda and two new deputies, as they work to stimulate the economy out of decades of stagnation.

The low mood of manufacturers in the Tankan survey was at odds with Ministry of Finance (MOF) data out on Monday showing that exports grew 12.2 percent year-on-year in January, topping the prior month´s 9.3 percent gain and economists´ estimate of a 10.3 percent increase.

Monday´s news also followed gross domestic product data out last week showing Japan recorded its eighth straight quarter of economic expansion over October-December. A strong currency eats into Japanese manufacturers´ profits and could disrupt the virtuous cycle of business investment, consumer spending and growth that authorities have struggled to set in motion.

"Our consolidated profits have deteriorated because of a strong yen," a manager of a transport equipment maker wrote in the survey. Economists believe global demand should continue to drive Japanese exports and broader economy in the coming months, even though the rising yen clouds the outlook. The dollar was down 0.4 percent to 105.545 on Friday, its lowest in 15 months.