Japan gets exports boost

Japan's exports rose by the fastest rate for seven years in November on a month-on-month basis, boosting hopes that the country can escape falling into recession again in 2010.

Strong exports to China and the rest of Asia drove a 4.9% increase between October and November, countering continued domestic weakness in demand.

The data offer one piece of encouraging news for an economy struggling to find its footing amid a strong yen and deepening deflation.

Government spending measures around the world have helped fuel demand for Japan's cars, gadgets and machinery.

With imports down 16.8% from a year earlier to 4.6 trillion yen, Japan posted a trade surplus of 374billion yen.

"I'd say the recovery in exports so far this year has been close to the best scenario we had thought of at the beginning of the year," said Junko Nishioka, chief economist at RBS Securities in Tokyo.

"Given that exports are growing solidly despite the yen's rise last month, we don't need to be overly pessimistic about growth. The economy will perhaps slow down early next year but a recession is unlikely."

Compared with a year ago, Japan's exports fell 6.2% in November, less than the median market forecast for a 6.5% decline and slower than a 23.2% annual decline the previous month, the data showed.

Exports to China rose 7.8% from a year earlier, up for the first time in 14 months, with such products as chemical compounds, car parts and resins contributing to growth.