Prime Minister Yukio Hatoyama (centre) held a meeting of the Ministerial Committee on Basic Policies at the Prime Minister's Office, Monday Jan 25, 2010.

Japan’s exports rose 12.1 per cent in December compared with the same month in 20098, while imports fell 5.5  per cent, according to the Ministry of Finance in Tokyo today, signalling that export demand from Asia, is boosting the economic recovery. China surpassed the US as Japan’s largest export market for the first time on an annual basis, the report showed. Exports fell 33.1 per cent in 2009.

In the month of December, exports rose by a seasonally adjusted 2.5 per cent, compared with November - - the 10th consecutive monthly rise.

Exports to China rose by 43 per cent and exports to Asia overall jumped 31 per cent in the month.

Exports to China dipped 20.9 per cent in 2009; were down by 38.5 per cent to the US and 38.2 per cent to Western Europe.

There was a strong rise in intermediate goods for China’s manufacturing industries in December. Exports of chemicals to China jumped by 98.5 per cent in the year; exports of machinery were up by 38.9 per cent, and semiconductors rose 49.5 per cent.

Vehicle exports to China jumped 94.2 per cent.

Exports in December to the US fell 7.1 per cent and shipments to Europe rose 1.4 per cent, the first gain in 17 months. 

In December 2008, Japanese exports had plunged 35.0 per cent in the aftermath of Lehman Brothers’ collapse in September, partly flattering the 2009 rise.

In February 2009, exports had dived 49.4 per cent compared with the previous year.

SEE also Finfacts report, Jan 27, 2010: Global financial stability improves but IMF sees fresh challenges; Japan warned on rising public debt