Japan exports up for third month in November, boost to economic recovery

By Kaori Kaneko TOKYO (Reuters) - Japan's exports are expected to have risen for the third straight month in November thanks to solid demand from the United States, an encouraging sign for shipments and the broader economy's recovery from a recession. Exports are forecast to have increased 7.0 percent in November from a year earlier, according to a Reuters poll of 24 economists, following a 9.6 percent gain in October and 6.9 percent rise in September. Imports were seen up an annual 1.7 percent last month, slowing from October's 2.7 gain as falls in oil prices cut into import costs despite more weakness in the yen. That would result in a trade deficit of 1 trillion yen in November, the 29th straight monthly deficit. "Although exports to China are stagnant recently, shipments to the U.S. and other Asian nations have started to show improvement," said Takeshi Minami, chief economist at Norinchukin Research Institute. "Rises in exports in the past few months show a steady recovery but it is still unknown whether this trend will continue because the global economy is still not so strong." Data in recent months have pointed to slowing global growth momentum, especially in China and the euro zone. Minami said a weak yen probably helped shipments of semiconductors, metal working machines and autos in November. The finance ministry will release the trade data on Dec. 17 at 8:50 am (2350 GMT, Dec. 16). Analysts say a weaker yen is not benefiting Japanese exporters as much as it did several years ago as many firms have shifted their production sites to offshore markets. And a softer yen also boosts import costs, weighing on small and medium-sized companies, and households. The yen hit a 7-year low against the dollar near 122 yen early this month and is down about 40 percent since Prime Minister Shinzo Abe came to power in December 2012. Japan's economy unexpectedly slipped into recession in the third quarter, after an April sales tax hike knocked household spending, backing premier Abe's recent decision to delay a second sales tax hike. Analysts expect the economy to rebound in the current quarter, although data so far indicate that recovery may not be as strong as policy makers expect. (Editing by Shri Navaratnam)