AFP reported that Japan's export growth slowed for a fifth straight month in July 2010, amid signs a fragile recovery was continuing to lose steam, with the strong yen posing a threat.

The finance ministry said that exports jumped 23.5% to JPY 5.98 trillion, less than June's 27.7% but above market expectations of 21.8%. Imports rose by 15.7% to JPY 5.18 trillion.

Strong demand for automobiles, high tech products and factory parts have helped offset a weaker domestic picture, enabling Japan's biggest companies to return to profit and bring about a tentative economic recovery.

But exporters are eyeing the yen's recent rise to 15-year highs against the dollar with anxiety amid calls for government action, as a strong domestic unit erodes overseas profits when repatriated.

Japan's growth slowed in the second quarter to an annualized 0.4%, down from 4.4% in the previous three months with the economy outpaced by China on nominal terms. June saw industrial output take a surprise fall.

(Sourced from AFP)