JAPAN’S exports fell in August for an 11th consecutive month due to the yen strength and sluggish overseas demand, in a sign that an export-reliant economy may struggle to accelerate in the current quarter.

    Ministry of Finance (MOF) data showed yesterday that exports fell 9.6 percent in the year to August, dragged down by shipments of cars and steel. The year-on-year fall was bigger than a 4.8 percent drop expected by economists in a Reuters poll, following a 14.0 percent decline in July.

    The data underscored a dominant market view that any growth in the world’s third largest economy would be moderate in July-September, offering little solace to the Bank of Japan (BOJ), which concluded its two-day policymeeting late yesterday.

    With growth lacking strength and inflation undershooting the Bank of Japan’s 2 percent goal, many analysts in a Reuters poll expect the BOJ to ease further when it announces results of comprehensive review of its stimulus.

    “Exports lacked momentum, although they were not so weak as the headline figure suggested. On average they were largely flat or on a gradual recovery,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.

    “Given the yen’s gains, however, exports would likely struggle to accelerate ahead,” he said.

    The MOF data showed exports to China — Japan’s largest trading partner — fell 8.9 percent in the year to August, marking the sixth straight month of annual declines.

    Shipments to Asia, which accounts for more than half of Japanese exports, fell 9.4 percent, led by South Korea-bound shipments of steel. It was the 12th straight month of falls.

    U.S.-bound exports fell 14.5 percent, hurt by declines in car shipments, while exports to European Union fell 0.7 percent.(SD-Agencies)