Exports from Japan had been selling well for the ninth month in a row in November 2013, thanks to more car shipments to the United States and China. The volume of cars exported to China and the US climbed 185 percent and 13.2 percent. The jump in China sales was logged a year after consumers in the country initiated a boycott of Japanese products following a row over disputed islands in the East China Sea. Cars are also becoming another hot item in the US as the country’s economy continues its road to a steady recovery. Likewise, a weaker yen compared to the US dollar gives a competitive advantage to exporters like Toyota Motor Corp., according to analysts.
"The weak yen is having its effects on Japanese exports albeit slowly, giving carmakers some room to cut prices," said Taro Saito, senior economist at NLI Research Institute. He noted that demand in China should not be expected to accelerate “from now on” since the Chinese economy is heading for a stable slowdown.
While the Japanese yen has depreciated around 16 percent against the dollar this year, export gains have fallen short of early expectations, even dropping 0.2 percent in November from the previous month on a seasonally adjusted basis.
Takeshi Minami, chief economist at Norinchukin Research Institute, remarked that demand from Asia helped Japanese exports in November with data confirming a continued rise in Japan's exports, “reflecting a gradual recovery in global economy."