Bloomberg reported that Japan's export growth accelerated for the first time in nine months as a rebound in global demand helped the nation’s economy withstand the yen’s advance to a 15 year high.

The Finance Ministry said that overseas shipments rose 9.1% in November from a year earlier, from October's 7.8% gain. The median estimate of 19 economists surveyed by Bloomberg News was for a 10.3% increase.

Export gains were led by demand in China and Europe, easing concern that Japan is losing its main driver for a recovery from its worst postwar recession. Komatsu Limited, Asia’s largest maker of construction equipment, and carmaker Honda Motor Co are forecasting sales will grow in China.

Mr Takahide Kiuchi chief economist at Nomura Securities Co in Tokyo said that "Although exports may decline this quarter, they will probably rebound in the first quarter given the global economy is picking up and the negative effect of the strong yen may start to wear off. Exports will be a trigger to jump start the economy next year."

The value of exports to China, Japan's biggest market, advanced 18.3% in November from a year earlier as compared with a 17.6% increase in October. Sales to Europe rose 10.1% as compared with a 1.9% drop in October.

Japan's second largest carmaker Honda Motor said on December 17th 2010 that it expects sales in China to climb at least 10% in 2011 as rising wages and economic growth fuel demand.

Japan's gross domestic product is expected to shrink at a 1.9% annual pace in the three months through December. Growth was 4.5% in the third quarter as incentives to buy cars and electronics encouraged consumer spending.

(Sourced from www.bloomberg.net)