Japan's exports fell at the slowest pace in more than a year in November as the world's second-largest economy benefited from a recovery in Asian powerhouse China.
Japan logged a trade surplus for a tenth month in a row, soothing fears that its economic recovery from the worst recession in decades is running out of steam due to a stronger yen and renewed deflation.
Exports slipped 6.2% in November from a year earlier - the smallest decline in 14 months - ending a string of double-digit falls. Imports dropped 16.8%, the finance ministry said.
Japan posted a bigger than expected 373.93 billion yen ($4.1 billion) surplus for the month, against a year-earlier deficit of 227.51 billion yen.
Japan's economy is slowly coming out of the worst downturn since World War II on the back of recovering demand in overseas markets, although a stronger yen is eating into exporters' profits.
Japan's exports roughly halved at the height of the economic crisis earlier this year as consumers, particularly in the US and Europe, stopped buying cars and big-ticket items such as televisions.
Efforts by world governments to spend their way out of recession have helped to breathe new life into Japan's factories and ports, although the country's industrial production is still more than one-fifth lower than a year ago.
The main driver of the recovery in exports is buoyant demand from the rest of Asia. Exports to the region increased 4.7% in November - the first rise in 14 months - with shipments to China up 7.8%.
The surplus with the US grew 10.6%, the first rise in 27 months, thanks to higher exports of cars and heavy machinery.
Japan's economy remains as dependent as ever on exports to drive its growth, with an ageing population curbing consumer spending. Japan's economy returned to growth in this year's second quarter after a severe year-long recession.
But fears have deepened that the recovery could fizzle out, after the government reported earlier this month that Asia's biggest economy grew at a much slower rate than previously thought in the third quarter.
Japan's government announced this month a fresh stimulus package and the central bank decided to pump 10 trillion yen into the financial system to tackle deflation and prevent a return to recession.
