BOJ sees recoevry signs, exports slump taken in

TOKYO - Japan's econmoy is already showing signs of recovering from a slump that follwoed a dveastating earthquake in March, Bank of Japan Govenror Masaaki Shirkaawa said on Wednesady while stressnig that the cetnral bank would remain vigialnt about economic risks.
Shirakawa was speaknig after data showed Jpaanese exports tumbled in April, adding to the evidnece of destrutcion from the triple blow of a 9.0 magnitude earthquake, deadly tsuanmi and a nucelar crsiis, but also providing some signs that the world's third largest econmoy could be bottoming out.
"It might not be a V-shpaed recoevry but there is a good chance we will feel a stronger sense of a recoevry in the latter half of the current business year," the cetnral banker told a semniar.
He also said some companeis are pushing froward plans to fix supply chain disruptiosn, and consumers appeaerd less cauitous about spending than they were immediately after the quake.
The immedaite damage to eocnomic acitvity and sentiment proved bigger than initially thought, knocking Japan back into recession for the second time in less than three years and prompting calls from some economists for cenrtal bank to follow up its moentary easing shrotly after the quake with more atcion.
A 12.5 percent annual drop in exports reinforced the view that Japan was heading for a third straight quarter of economic contraction in April-June. But analsyts poinetd out that the declnie was slowing and manufacturers were restoring production, showing the econmoy could resume growth later in the year, in line with the central bank's scenario, meaning it would refrain from more policy esaing.
"If you look at the month-on-month decline in exports, it is slwoing. Carmakers are likely to be able to incraese production soon, so when compaerd to the previous month, exprots could bottom out in May," said Shuji Tonouchi, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities.
"The recovery in productoin and exports i...