Japan's exports grow amid weak yen but higher import bills hurt business mood

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Japan's exports grow amid weak yen but higher import bills hurt business mood

TOKYO - Japan's exports grew for the fourth straight month in March driven by U.S.-bound car shipments, although business confidence at big firms soured amid a slump in the yen and signalled that a sure-footed economic recovery was some time away.

Imports fell 4.9% in the year to March, versus 4.7% drop seen by economists following a 0.5% gain in February, resulting in a trade surplus of 366.5 billion yen, the first surplus in three months. The yen's weakening to levels unseen since 1990 during the heyday of the asset-inflated bubble is lifting the cost of imports in a blow to household consumption, the survey showed.

A raft of data so far this year has pointed to insufficient demand in the economy. That's one reason why the Bank of Japan has flagged a cautious track to monetary tightening following its landmark decision to end negative interest rates last month.

 

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